Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) Standard direct labor hours allowed (SQ) Total payroll for direct labor Direct labor efficiency variance The direct labor flexible-budget variance for February (rounded to the nearest dollar) was: $42,300 unfavorable. $44,500 unfavorable. $46,350 unfavorable. $54,900 unfavorable. $18.900 unfavorable. 61,500 63,000 $ 774,900 $ 18,000
Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) Standard direct labor hours allowed (SQ) Total payroll for direct labor Direct labor efficiency variance The direct labor flexible-budget variance for February (rounded to the nearest dollar) was: $42,300 unfavorable. $44,500 unfavorable. $46,350 unfavorable. $54,900 unfavorable. $18.900 unfavorable. 61,500 63,000 $ 774,900 $ 18,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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