Blossom Company's standard labor cost of producing one unit of Product DD is 3.40 hours at the rate of $10.50 per hour. During August, 42,900 hours of labor are incurred at a cost of $10.70 per hour to produce 12,400 units of Product DD (a) Compute the total labor variance. Total labor variance $ 8580 (b) Compute the labor price and quantity variances. Labor price variance 8580 Labor quantity variance $ 8432 (c) Compute the labor price and quantity variances, assuming the standard is 3.6 hours of direct labor at $10.85 per hour. Labor price variance Labor quantity variance $

Blossom Company's standard labor cost of producing one unit of Product DD is 3.40 hours at the rate of $10.50 per hour. During August, 42,900 hours of labor are incurred at a cost of $10.70 per hour to produce 12,400 units of Product DD (a) Compute the total labor variance. Total labor variance $ 8580 (b) Compute the labor price and quantity variances. Labor price variance 8580 Labor quantity variance $ 8432 (c) Compute the labor price and quantity variances, assuming the standard is 3.6 hours of direct labor at $10.85 per hour. Labor price variance Labor quantity variance $

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Description: Blossom Company's standard labor cost of producing one unit of Product DD is 3.40 hours at the rate of $10.50 per hour. DuringAugust, 42,900 hours of labor are incurred at a cost of $10.70 per hour to produce 12,400 units of Product DD(a)Compute the

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 31P: Misterio Company uses a standard costing system. During the past quarter, the following variances...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
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