FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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During December, 110,200 hours of labor were incurred to produce 58,000 units of product. The actual labor rate was $12.50 per hour.
Compute the Labor Rate Variance and the Labor Efficiency (or Quantity) Variance
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- - Your answer is partially correct. Coronado Company's standard labor cost per unit of output is $33.00 (3.00 hours x $11 per hour). During August, the company incurs 2,970 hours of direct labor at an hourly cost of $9.90 per hour in making 1.100 units of finished product. Compute the total, price, and quantity labor variances. (Round answers to 2 decimal places, e.g. 52.75.) Total labor variance Labor price variance Labor quantity variance LA 6,897 i 5,275 25,410 Unfavorable Unfavorable Favorablearrow_forwardGarrow_forwardThe standard costs and actual costs for factory overhead for the manufacture of 2,900 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.76 per hour Variable overhead 3 hours per unit at $1.97 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,000 The total factory overhead cost variance is a. $1,849 unfavorable Ob. $2,837 favorable Oc. $861 unfavorable Od. $1,849 favorablearrow_forward
- Mordica Company's standard labor cost per unit of output is $21.00 (2.10 hours x $10.00 per hour). During August, the company incurs 2,772 hours of direct labor at an hourly cost of $11.00 per hour in making 1,200 units of finished product. Compute the total, price, and quantity labor variances. (Round answers to 2 decimal places, eg. 52.75) Total labor variance $4 -6492 Unfavorable Labor price variance 2772 Unfavorable Labor quantity variance 4092 Unfavorable %24 %24 %24arrow_forwardThe following labor standards have been established for a particular product: Standard labor-hours per unit of output Standard labor rate 9.1 hours $ 17.10 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked Actual total labor cost Actual output 10,100 hours $ 169,680 What is the labor rate variance for the month? 1,000 unitsarrow_forwardAcme Company uses a standard cost accounting system and applies variable manufacturing overhead at a standard rate of $4.80 per machine hour. During the current month, Acme produces 13,600 units of finished goods, the variable overhead spending variance is $16,200 unfavorable, and the variable overhead rate variance is $6,120 unfavorable. The standard machine hours per unit of finished goods is 2.5 hours. What is the actual number of machine hours worked during the month? 36,100 hours 35,275 hours 31,900 hours 32,725 hoursarrow_forward
- ES The following information is gathered from the labor records of Binamul & Co. Payroll allocation for direct labor is Rs. 1, 31, 600 Time card analysis shows that 9,400 hours were worked on productions lines. Production reports for the period showed that 4,500 units have been completed, each having standard labor time of 2 hours and a standard labor rate of Rs. 15 per hour. Calculate the labor variances.arrow_forwardCan you show me how this is done? Bailey’s standard labor cost of producing one unit of Product DD is 1.7 hours at a rate of $12.9 per hour. During August, 1,462 hours were incurred at a cost of $11.8 per hour to produce 1,257 units of Product DD. Bailey’s direct labor rate 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: 8.24 Correct Answer: 1,608 ± 1 (F)arrow_forwardMultiple Choice $4,850 favorable. $11,000 favorable. $6,150 favorable. $4,850 unfavorable. $11,000 unfavorable.arrow_forward
- Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 3 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 10,000 units. The standard cost for labor allowed for the output was $120,000, and there was an unfavorable direct labor time variance of $5,872. A. What was the standard cost per hour? Round your answer to two decimal places. Standard cost $fill in the blank 1 per hour B. How many actual hours were worked? Actual hours fill in the blank 2 C. If the workers were paid $4.15 per hour, what was the direct labor rate variance? Round your answer to two decimal places. Enter the amount as positive number. Direct labor rate variance $fill in the blank 3 Unfavorablearrow_forwardThe standard cost of product 2525 includes 4.10 hours of direct labour at $14.40 per hour. The predetermined overhead rate is $21.60 per direct labour hour. During July, the company incurred 11,170 hours of direct labour at an average rate of $14.80 per hour and $237,012 of manufacturing overhead costs. It produced 2,700 units. (a) Calculate the total, price, and quantity variances for labour. (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answers to O decimal places, e.g. 125.) Total labour variance Labour price variance Labour quantity variance eTextbook and Media Save for Later tA $ $ +A ta $ Favourable Unfavourable Neither favourable nor unfavourable Attempts: 0 of 3 used Submit Answerarrow_forwardGive answer for the questionarrow_forward
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