Tharaldson Corporation makes a product with the following standard costs:StandardStandardQuantity orHoursStandard Price orCost PerRateUnitDirect materials$ 4.00 per ounce$ 11.00 per hour$ 4.00 per hour7.1 ounces$28.40Direct labor$ 3.30$ 1.200.3 hoursVariable overheade.3 hoursThe company reported the following results concerning this product in June.Originally budgeted outputActual outputRaw materials used in production2,500 units3,000 units21,500 ouncesPurchases of raw materials22,000 ounces560 hoursActual direct labor-hoursActual cost of raw materials purchases$ 45,100$ 12,500$ 3,250Actual direct labor costActual variable overhead costThe company applies variable overhead on the basis of direct labor-hours. The direct materials purchases varlance is computed when the materials are purchaseThe labor efficiency varlance for June is:

Labour efficiency variance in the business means difference is actual cost of labour and budgeted…

Tharaldson Corporation makes a product with the following standard costs: Standard Standard Quantity or Standard Price or Cost Per Unit Hours Rate Direct materials Direct labor Variable overhead $ 4.00 per ounce $ 11.00 per hour $ 4.00 per hour 7.1 ounces $28.40 $ 3.30 $ 1.20 e.3 hours 0.3 hours The company reported the following results concerning this product in June. 2,500 units 3,000 units 21,500 ounces Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 22,000 ounces 560 hours $ 45,100 $ 12,500 $ 3,250 The company applies varlable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchas The labor efficiency varlance for June is:

Tharaldson Corporation makes a product with the following standard costs: Standard Standard Quantity or Standard Price or Cost Per Unit Hours Rate Direct materials Direct labor Variable overhead $ 4.00 per ounce $ 11.00 per hour $ 4.00 per hour 7.1 ounces $28.40 $ 3.30 $ 1.20 e.3 hours 0.3 hours The company reported the following results concerning this product in June. 2,500 units 3,000 units 21,500 ounces Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 22,000 ounces 560 hours $ 45,100 $ 12,500 $ 3,250 The company applies varlable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchas The labor efficiency varlance for June 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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Miguez Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 4.0 liters 0.7 hours 0.7 hours Standard Price or Rate $ 8.70 per liter $ 39.00 per hour $ 3.70 per hour Standard Cost Per Unit $ 34.80 $ 27.30 $ 2.59 The company budgeted for production of 4,300 units in September, but actual production was 4,200 units. The company used 7,140 liters of direct material and 1,850 direct labor-hours to produce this output. The company purchased 7,500 liters of the direct material at $8.90 per liter. The actual direct labor rate was $41.10 per hour and the actual variable overhead rate was $3.60 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for September is: Multiple Choice О $294 F О О о $185 U $185 F $294 U
Tharaldson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 7.1 ounces 0.2 hours 0.2 hours Standard Price or Rate Standard Cost Per Unit $ 28.40 $ 4.00 per ounce $ 11.00 per hour $ 2.20 $ 4.00 per hour $ 0.80 The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production 2,500 units 3,000 units 21,500 ounces Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 22,500 ounces 560 hours $ 45,100 $ 12,500 $ 3,250 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for June is: Multiple Choice $306 F $6.340 U $306 U $6,340 F
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Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.6 ounces $ 3.00 per ounce $ 16.80 Direct labor 0.3 hours $ 10.00 per hour $ 3.00 Variable overhead 0.3 hours $ 7.00 per hour $ 2.10 The company reported the following results concerning this product in June. Originally budgeted output 4,000 units Actual output 4,000 units Raw materials used in production 20,600 ounces Purchases of raw materials 21,700 ounces Actual direct labor-hours 540 hours Actual cost of raw materials purchases $ 42,700 Actual direct labor cost $ 14,000 Actual variable overhead cost $ 4,000 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for June is:
Mohammed Company employs a standard cost system. Mohammed has established the following standards for one unit of product: Standard Quantity Standard Price Standard Cost Direct materials 12.0 pounds $ 7.00/pound $ 84.00 Direct labor 2.0 hours $15.00/hour 75.00 During June, Mohammed planned to produce 21,000 units of product. It purchased 330,000 pounds of direct material at a total cost of $2,343,000. The total factory wages for June were $1,440,000. Mohammed manufactured 20,000 units of product during June using 302,000 pounds of direct material and 41,000 direct labor hours. How much is the labor efficiency variance? $15,000 unfavorable $75,000 unfavorable $75,000 favorable $15,000 favorable $35,000 favorable
Ravena Labs., Incorporated makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 1.4 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October: a. b. ● C. d. ● ● 3,750 units of compound were produced during the month. There was no beginning direct materials inventory. Direct materials purchased: 12,000 ounces for $225,000. The ending direct materials inventory was 2,000 ounces. The labor efficiency variance for October is: Direct labor-hours worked: 5,600 hours at a cost of $67,200. Variable manufacturing overhead costs incurred amounted to $18,200. Variable manufacturing overhead applied to products: $18,375. $1,400 Favorable $1,900 Unfavorable $3,750 Favorable $4,375 Unfavorable
Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) Direct labor (1.7 hours @ $12.00 per hour) Overhead (1.7 hours @ $18.50 per hour) $ 20.00 20.40 31.45 Standard cost per unit $ 71.85 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power $ 15,000 75,000 15,000 30,000 135,000 Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs 23,000 71,000 17,000 225, 750 336, 750 $ 471,750 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. $ 317, 200 248, 000…
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.8 ounces $ 4.00 per ounce $ 27.20 Direct labor 0.5 hours $ 12.00 per hour $ 6.00 Variable overhead 0.5 hours $ 7.00 per hour $ 3.50 The company reported the following results concerning this product in June. Originally budgeted output 2,200 units Actual output 2,700 units Raw materials used in production 16,900 ounces Purchases of raw materials 18,000 ounces Actual direct labor-hours 530 hours Actual cost of raw materials purchases $ 45,000 Actual direct labor cost $ 12,200 Actual variable overhead cost $ 3,100 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for June is: Multiple…
A company makes a product with the following standard costs: Standard Quantity or Hours Standard Cost Per Standard Price or Rate Unit Direct materials 7.6 ounces $4.00 per ounce $30.40 $5.00 $ 4.50 Direct labor 0.5 hours $ 10.00 per hour Variable overhead 0.5 hours $ 9.00 per hour The company reported the following results concerning this product In June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 3,000 units 3,100 units 16,300 ounces 17,400 ounces 510 hours $ 45,000 $ 13,000 $3,500 The company applles varlable overhead on the basls of direct labor-hours. The labor rate varlance for June Is: - ఆడిం Multiple Choice $7.900 F $7,900 U $1,337 U
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Standard Price or Standard Hours Rate Cost Direct materials Direct labor 6.90 pounds 0.50 houra $ 2.50 per pound $ 13.50 per hour $ 17.25 $ 6.75 During the most recent month, the following activity was recorded: a. Thirteen thousand four hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,340 units, using 12,060 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 770 hours of direct labor time were recorded at a total labor cost of $9,240. Required: Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Materials price variance…
Denger
Sweet Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.0 ounces $ 3.00 per ounce $ 18.00 Direct labor 0.3 hours $ 11.00 per hour $ 3.30 Variable overhead 0.3 hours $ 9.00 per hour $ 2.70 The company reported the following results concerning this product in April. Originally budgeted output 3,600 units Actual output 3,200 units Raw materials used in production 21,000 ounces Purchases of raw materials 22,100 ounces Actual direct labor-hours 500 hours Actual cost of raw materials purchases $ 42,300 Actual direct labor cost $ 13,600 Actual variable overhead cost $ 3,800 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for April is: