Fiber Oil performs oil changes. The standard wage rate for oil change technicians is $18 per hour. By analyzing its past records of time spent on oil changes, the company has developed a standard of 12 minutes (or 0.20 hour changes were performed at Fiber Oil. Oil change technicians worked a total of 250 direct labor hours at an average rate of $25 per hour. Read the requirements Requirement 1. Calculate the direct labor rate variance. Determine the formula for the rate variance, then compute the rate variance for the direct labor. (Enter the result as a positive number. Label the variance as favorable (F) or unfavorable (U). Enter the currency amount in the fo round the final variance amount to the nearest whole dollar. Abbreviations used: DL = Direct labor.) DL rate variance Requirements 1. Calculate the direct labor rate variance. 2. Calculate the direct labor efficiency variance.

Fiber Oil performs oil changes. The standard wage rate for oil change technicians is $18 per hour. By analyzing its past records of time spent on oil changes, the company has developed a standard of 12 minutes (or 0.20 hour changes were performed at Fiber Oil. Oil change technicians worked a total of 250 direct labor hours at an average rate of $25 per hour. Read the requirements Requirement 1. Calculate the direct labor rate variance. Determine the formula for the rate variance, then compute the rate variance for the direct labor. (Enter the result as a positive number. Label the variance as favorable (F) or unfavorable (U). Enter the currency amount in the fo round the final variance amount to the nearest whole dollar. Abbreviations used: DL = Direct labor.) DL rate variance Requirements 1. Calculate the direct labor rate variance. 2. Calculate the direct labor efficiency variance.

Name: Fiber Oil performs oil changes. The standard wage rate for oil change
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Description: Fiber Oil performs oil changes. The standard wage rate for oil change technicians is $18 per hour. By analyzing its past records of time spent on oil changes, the company has developed a standard of 12 minutes (or 0.20 hours) per oil change. In July

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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wage ige per hour. By analyzing its past records of time spent on oil changes, the company has developed a standard of 21 minutes (or 0.35 hours) per oil change. In July, 1,000 oil changes were performed at Fiber Oil. Oil change technicians worked a total of 290 direct labor hours at an average rate of $25 per hour. Read the requirements. enter. Abbreviations used: DL = Direct labor.) Actual hours x ( *($ 290 x ( Standard rate X 16.00 $ Actual rate 25.00 = DL rate variance U Requirement 2. Calculate the direct labor efficiency variance. Determine the formula for the efficiency variance, then compute the efficiency variance for the direct labor. (Enter the variance as a positive number. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U) in the input field after the amount you enter. Abbreviations used: DL= Direct labor.) = $ 2,610 = DL efficiency variance
Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 30 minutes and 6.2 quarts of oil are used. In June, Guillermo's Oil and Lube had 960 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June:Actual number of oil changes performed: 960Actual number of direct labor hours worked: 472 hoursActual rate paid per direct labor hour: $14.50Standard rate per direct labor hour: $14.00 Required: If required, round your answers to the nearest cent. 1. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June using the formula approach. Direct labor rate variance (LRV) $______ Fvaorable or Unfavorable Direct labor efficiency variance (LEV) $_______ Favorable or Unfavorable 2. Calculate the total direct labor variance for…
Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 20 minutes and 6.4 quarts of oil are used. In June, Guillermo's Oil and Lube had 920 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 920Actual number of quarts of oil used: 6,800 quartsActual price paid per quart of oil: $5.30Standard price per quart of oil: $5.20 Required: 1. Calculate the direct materials price variance (MPV) and the direct materials usage variance (MUV) for June using the formula approach. If required, round your answers to the nearest cent. MPV $_______ Unfavorable MUV $______ Unfavorable 2. Calculate the total direct materials variance for oil for June. If required, round your answer to the nearest cent. $__________ Unfavorable 3. What…
A manufacturing company estimates it will incur $240,000 of overhead costs in the next year. The company allocates overhead using machine hours, and estimates it will use 1,600 machine hours in the next year. During the month of June, the company used 80 machine hours on Job 1 and 70 machine hours on Job 2. 1. Compute the predetermined overhead rate to be used to apply overhead during the year. Predetermined Overhead Rate Estimated Overhead Costs Estimated Activity Base 2. Determine how much overhead should be applied to Job 1 and to Job 2 for June. OH Applied x Predetermined OH rate Machine Hours Used 80 hours 70 hours 150 hours Job 1 Job 2 Total 3. Prepare the journal entry to record overhead applied for June. General Journal Work in Process Inventory Factory Overhead Debit Credit Learning Objective P3: Describe and record the flow of overhead costs in job order costing
Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 20 minutes and 6.6 quarts of oil are used. In June, Guillermo's Oil and Lube had 920 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 920Actual number of quarts of oil used: 6,580 quartsActual price paid per quart of oil: $5.00Standard price per quart of oil: $4.95 Required: 1. Calculate the direct materials price variance (MPV) and the direct materials usage variance (MUV) for June using the formula approach. If required, round your answers to the nearest cent. MPV (Favorable/Unfavorable) MUV (Favorable/Unfavorable) 2. Calculate the total direct materials variance for oil for June. If required, round your answer to the nearest cent.…
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A manufacturing company estimates it will incur $240,000 of overhead costs in the next year. The company applies overhead using machine hours and estimates it will use 1,600 machine hours in the next year. During the month of June, the company used 80 machine hours on Job 1 and 70 machine hours on Job 2. 1. Compute the predetermined overhead rate to be used to apply overhead during the year. 2. Determine how much overhead should be applied to Job 1 and to Job 2 for June. 3. Prepare the journal entry to record overhead applied for June.
Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 30 minutes and 6.4 quarts of oil are used. In June, Guillermo's Oil and Lube had 1,000 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 1,000Actual number of quarts of oil used: 6,960 quartsActual price paid per quart of oil: $5.30Standard price per quart of oil: $5.25 1. What if the actual number of quarts of oil purchased in June had been 6880 quarts, and the materials price variance was calculated at the time of purchase? If required, round your answers to the nearest cent. What would be the materials price variance (MPV)? What would be the materials usage variance (MUV)?
Winston Company estimates that the factory overhead for the following year will be $967,500. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 38,700 hours. The total machine hours for the year were 54,600 hours. The actual factory overhead for the year was $1,357,000. a. Determine the total factory overhead amount applied. (Round to the nearest dollar.) $fill in the blank b. Calculate the over- or underapplied amount for the year. Enter the amount as a positive number. $fill in the blank c. Prepare the journal entry to close factory overhead into Cost of Goods Sold. fill in the blank fill in the blank
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