TWE Consulting offers professional training programs. There are currently three consultants, Morg Freerman, John Shant and Parker Paulmer. Each consultant costs on average $35 per hour and takes approximately three business days to perform the training program. Assume each program and client is assigned only one consultant. The consultants are expected to work 7.5 hours per business day. Variable overhead costs are based on the amount of consulting hours. The predetermined overhead rate is $13.70 per consulting hour. For the upcoming period, the company expects 290 training programs. At the end of the period, the company incurred $141,750 in consultants' wages and $37,800 in variable overhead costs. There were 260 training programs and the consultants spent a total of 3,150 consulting hours to train the clients. Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. a) Calculate the direct labor price variance. Actual Labor Rate: $ Standard Labor Rate: $ Direct Labor Price Variance: $ b) Calculate the direct labor efficiency variance. Actual DLH: Standard DLH for Actual Output: Direct Labor Efficiency Variance: $ c) Calculate the variable overhead spending variance. Actual Rate: $ Standard Rate: $ Variable Overhead Spending Variance: $ +
TWE Consulting offers professional training programs. There are currently three consultants, Morg Freerman, John Shant and Parker Paulmer. Each consultant costs on average $35 per hour and takes approximately three business days to perform the training program. Assume each program and client is assigned only one consultant. The consultants are expected to work 7.5 hours per business day. Variable overhead costs are based on the amount of consulting hours. The predetermined overhead rate is $13.70 per consulting hour. For the upcoming period, the company expects 290 training programs. At the end of the period, the company incurred $141,750 in consultants' wages and $37,800 in variable overhead costs. There were 260 training programs and the consultants spent a total of 3,150 consulting hours to train the clients. Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. a) Calculate the direct labor price variance. Actual Labor Rate: $ Standard Labor Rate: $ Direct Labor Price Variance: $ b) Calculate the direct labor efficiency variance. Actual DLH: Standard DLH for Actual Output: Direct Labor Efficiency Variance: $ c) Calculate the variable overhead spending variance. Actual Rate: $ Standard Rate: $ Variable Overhead Spending Variance: $ +
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 2EB: Salley is developing material and labor standards for her company. She finds that it costs $0.55 per...
Related questions
Question
5
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,