The records of Simon Company show the following for February: Standard labor-hours allowed per unit of output Standard variable overhead rate per standard direct labor-hour Good units produced Actual direct labor-hours worked Actual total direct labor Direct labor efficiency variance Actual variable overhead Required: $ 1.50 32 60,000 92,000 $ 1,982,500 $ $ 38,300 U 2,567,500 Compute the direct labor and variable overhead price and efficiency variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations. Omit the "$" sign in your response.)
The records of Simon Company show the following for February: Standard labor-hours allowed per unit of output Standard variable overhead rate per standard direct labor-hour Good units produced Actual direct labor-hours worked Actual total direct labor Direct labor efficiency variance Actual variable overhead Required: $ 1.50 32 60,000 92,000 $ 1,982,500 $ $ 38,300 U 2,567,500 Compute the direct labor and variable overhead price and efficiency variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations. Omit the "$" sign in your response.)
Chapter1: Financial Statements And Business Decisions
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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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Transcribed Image Text:The records of Simon Company show the following for February:
Standard labor-hours allowed per unit
of output
Standard variable overhead rate per
standard direct labor-hour
Good units produced
Actual direct labor-hours worked
Actual total direct labor
Direct labor efficiency variance
Actual variable overhead
Required:
$
1.50
es
32
60,000
92,000
$ 1,982,500
$
38,300 U
$ 2,567,500
Compute the direct labor and variable overhead price and efficiency variances.
(Input all amounts as positive values. Indicate the effect of each variance by
selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero
variance). Do not round your intermediate calculations. Omit the "$" sign in your
response.)
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