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 ch
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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

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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D M ✓ -- M -- L m ■ || ■ ! -- M ■ 1 Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased FIFO LIFO Weighted average 600 units @ $ 7 400 units @ $ 9 = X Answer is not complete. Ending Inventory $ 480 units @ $ 12 = 290 units @ $ 14 = 7,520 x héi BOD -- During the year, The Shirt Shop sold 1,410 T-shirts for $23 each. - Required information [The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: ■ I ■ H " 1 LTE $4,200 3,600 ■ ■ 5,760 4,060 - - ■ ■ .. M 4 H M = - m I ■ M m I B ■ = -- I H -- ■ 1 I ■ ■ IT H m M - -- " ■ ■ Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.) - ■ I M ■ ■ M M M M H M I -- ■ ■ H 1 M
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours 27 minutes Standard Rate per Hour $6.00 During August, 9,540 hours of direct labor time were needed to make 19,600 units of the Jogging Mate. The direct labor cost totaled $56,286 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,600 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,600 Jogging Mates? 3. What is the labor spending variance? Standard Cost $2.70 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $47,700 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate…
Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow:
Mema Company makes motorcycles. Management wants to estimate overhead costs to plan its operations. A recent trade publication revealed that overhead costs tend to vary with machine hours. To check this, they collected the following data for the past 12 months. (See the picture for the table) Compute for the: Use the High-low method to estimate the fixed and variable portion of overhead costs based on machine hours.
Can you show me how this is done? How do I know if it is favorable or unfavorable? Bailey’s standard labor cost of producing one unit of Product DD is 1.8 hours at a rate of $10.1 per hour. During August, 2,515 hours were incurred at a cost of $12.9 per hour to produce 1,087 units of Product DD. Bailey’s direct labor efficiency variance is $__________ Indicate the amount and whether it is Favorable or Unfavorable by placing F or U by amount, do not skip a space and do not use $ in your answer. For example, if your answer is $1,000 favorable, answer 1000F Selected Answer: -5,639.84U Correct Answer: 5,640 ± 1 (U)
Verde Company produces wheels for bicycles. During the year, 660,000 wheels were produced. The actual labor used was 368,000 hours at $9.20 per hour. Verde has the following labor standards: 1) $10.20 per hour; 2) 0.5 hour per wheel. REQUIRED 1. Compute the labor rate variance. 2. Compute the labor efficiency variance.
determine the direct labour hourly rate.
Velshi Printers has contracts to complete weekly supplements required by forty - six customers. For the year 2018, manufacturing overhead cost estimates total $2,080,000 for an annual production capacity of 16 million pages. For 2018 Velshi Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis: Cost pool Design changes Manufacturing overhead costs Activity level 100 design changes $160,000 Setups 1,850,000 6,000 setups Inspections 70,000 9,000 inspections Total manufacturing overhead costs $2,080,000 During 2018, two customers, Money Managers and Hospital Systems, are expected to use the following printing services: Activity Money Managers Hospital Systems Pages 90,000 106,000 Design changes Setups Inspections 12 17 26 34 Assuming activity - cost…
The manager of the main laboratory facility at UrbanFit Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed I that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. (Click the icon to view the data.) Use the high-low method to determine the laboratory's cost equation for total laboratory overhead. Use your results to predict total laboratory overhead if 3,500 lab tests are performed next month. Let's begin by determining the formula that is used to calculate the variable cost (slope). Data table Variable cost (slope) Number of Lab Month Tests Performed Total Laboratory Overhead Costs January 2,800 $21,500 February 2,600 $22,700 March 3,100 $27,900 April.... 3,550 $31,400 May 3,700 $28,500 June.. 1,200 $19,500 July 1,400 $14,500 Print Done X
A company has the following information in its standard cost card: £ Material 2.5kg at the price of £3/kg = 7.00 During the month the company recorded the following: Units produced = 2,500 units Material used = 7,850kg Material cost = £23,180 Calculate the material price variance. 2. Calculate the material usage variance. 3. Explain what is meant by the breakeven point, and its usefulness to a business.
Russell and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax return. Russell expected each Class 2 return to require 3.3 hours of labor at a cost of $39 per hour. The firm actually completed 650 Class 2 returns. Actual labor hours averaged 2.9 hours per return and actual labor cost amounted to $49 per hour. Required a. Determine the total labor variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the labor price variance and indicate whether it is favorable (F) or unfavorable (U). c. Determine the labor usage variance and indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, do not round intermediate calculations and select "None" if there is no effect (i.e., zero variance). a. Total labor variance b. Total labor price variance c. Total labor usage variance