Direct Labor Variances Greeson Clothes Company produced 16,000 units during June of the current year. The Cutting Department used 3,000 direct labor hours at an actual rate of $11.50 per hour. The Sewing Department used 5,000 direct labor hours at an actual rate of $11.20 per hour. Assume that there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $11.40. The standard labor time for the Cutting and Sewing departments is 0.20 hour and 0.30 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the Cutting Department and Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Cutting Department Sewing Department Direct labor rate variance Direct labor time variance Total direct labor cost variance $ $ $ ▼ b. The two departments have opposite results. The Cutting Department has a(n) rate and a(n) time variance, resulting in a total cost variance. In contrast, the Sewing Department has a(n) rate variance but has a cost variance. time variance, resulting in a total

Direct Labor Variances Greeson Clothes Company produced 16,000 units during June of the current year. The Cutting Department used 3,000 direct labor hours at an actual rate of $11.50 per hour. The Sewing Department used 5,000 direct labor hours at an actual rate of $11.20 per hour. Assume that there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $11.40. The standard labor time for the Cutting and Sewing departments is 0.20 hour and 0.30 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the Cutting Department and Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Cutting Department Sewing Department Direct labor rate variance Direct labor time variance Total direct labor cost variance $ $ $ ▼ b. The two departments have opposite results. The Cutting Department has a(n) rate and a(n) time variance, resulting in a total cost variance. In contrast, the Sewing Department has a(n) rate variance but has a cost variance. time variance, resulting in a total

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Description: Direct Labor VariancesGreeson Clothes Company produced 16,000 units during June of the current year. TheCutting Department used 3,000 direct labor hours at an actual rate of $11.50 per hour.The Sewing Department used 5,000 direct labor hours at an a

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 10E: Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct...

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