ESThe following information is gathered from the labor records ofBinamul & Co. Payroll allocation for direct labor is Rs. 1, 31, 600Time card analysis shows that 9,400 hours were worked onproductions lines. Production reports for the period showed that4,500 units have been completed, each having standard labor timeof 2 hours and a standard labor rate of Rs. 15 per hour. Calculate thelabor variances.

The objective of the question is to calculate the labor variances, which include labor rate variance…

Answered: ES The following information is…

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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Labour data for making one unit of finished product in Waterway Company are as follows: (1) Price-hourly wage rate $10.00, payroll taxes $0.80, and fringe benefits $1.60. (2) Quantity-actual production time 1.40 hours, rest periods and cleanup 0.50 hours, and set-up and downtime 0.40 hours. Calculate the following: (Round calculations and final answers to 2 decimal places, e.g. 15.25.) a. Standard direct labour rate per hour $enter a dollar amount rounded to 2 decimal places b. Standard direct labour hours per unit enter a number of hours rounded to 2 decimal places hours c. Standard labour cost per unit Senter a dollar amount rounded to 2 decimal places
A manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity 3,700 DLHs Overhead costs at the denominator activity level: Variable overhead cost $ 28,490 Fixed overhead cost $ 47,545 The following data pertain to operations for the most recent period: Actual hours 3,900 DLHs Standard hours allowed for the actual output 3,850 DLHs Actual total variable manufacturing overhead cost $ 29,445 Actual total fixed manufacturing overhead cost $ 47,995 The fixed manufacturing overhead budget variance for the period is closest to: $615 F $1,478 U $450 U $2,120 U
The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs 3 hours per unit at $0.71 per hour 3 hours per unit at $1.90 per hour Fixed overhead (based on 10,000 hours) Variable overhead Actual Costs Total variable cost, $17,800 Total fixed cost, $7,900 The fixed factory overhead volume variance is Oa. So Ob. $1,420 unfavorable Oc. $1,775 unfavorable Od. $1,420 favorable
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the standard cost card of its only product: Standard Hours 2 hours Fixed manufacturing overhead During the most recent period, the following additional information was available: The total actual fixed overhead cost was $275,000. • The budgeted amount of fixed overhead cost was $285,000. 46,000 direct labor-hours were actually used to produce 24,120 units. How much was the fixed overhead volume variance? Multiple Choice $14,440 U Standard Cost $ 12.00
A company's standards for its product are 8 pounds of direct materials at $13.20 per pound. For this period, the company produced 3,240 units, using 26,520 pounds of direct materials costing $358,020. The company uses a standard costing system. Prepare the entry to record direct materials variances and charge direct material costs to Work in Process Inventory. View transaction list Journal entry worksheet < Record direct materials and charge direct material costs to Work in Process Inventory. Note: Enter debits before credits. Transaction 1 General Journal Work in process inventory Direct materials price variance Direct materials quantity variance Record entry Clear entry Debit 358,020 Credit View general journal
Salado Company has a standard cost system in which it applies overhead to products based on the standard direct labour-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year $300,000 Budgeted standard direct labour-hours (denominator level of activity) 50,000 Hours Actual direct labour-hours 49,000 Hours Standard direct labour-hours allowed for the actual output 48,000 Hours Actual fixed overhead cost for the year $295,500 Required: Compute the fixed portion of the predetermined overhead rate for the year. Compute the fixed overhead budget and volume variances.
Sinbad Company applies factory overhead of the basis of direct labor hours. Budget and actual data for direct labor and overhead for the year are as follows: Budget Actual Direct labor hours 1,200,000 1,300,000 Manufacturing overhead costs 1,440,000 1,520,000 The manufacturing overhead for Sinbad for the current year is
Der Company uses a standard cost system in which it applies manufacturing overhead on the basis of direct labor-hours. Two direct labor-hours are required for each unit produced. The budgeted activity was set at 9,000 units. Manufacturing overhead was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200 hours worked during the period resulted in production of 8,500 units. Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. The fixed overhead production volume variance for the period was: a) $750 unfavorable. b) $2,500 unfavorable. c) $1,500 unfavorable. d) $1,000 unfavorable.
Derma COmpany applies overhead on the basis of direct labour hours in department B. Two direct labour hours are required for each product unit. Planned prodcution for the period was budgeted at 9,000 units. The 17,200 hours worked during the period resulted in production of 8,500 units. Manufacturing overhed was budgeted at $135,000 for the period, 20% of this costs is fixed. Variable manufacturing overheads costs incurred were $108,500, and fixed manufacturing overhead costs were $28,000. compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances
XYZ Company makes one product and has calculated the following amounts for direct labor: AH x AR = $84,000; AH x SR = $83,000; SH x SR = $85,000. Compute the direct labor cost variance. Multiple choice question. $1,000 U $1,000 F $2,000 F $2,000 U
Assume the following: • The standard labor rate per hour is $17.00. • The standard labor-hours allowed per unit of finished goods is 3 hours. • The actual quantity of labor hours worked during the period was 44,000 hours. • The total actual direct labor cost for the period was $726,000. • The company produced 15,000 units of finished goods during the period. What is the labor efficiency variance? Multiple Choice $17,000 U $17,000 F $22,000 U $22,000 F

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