Financial and Managerial Accounting - CengageNow
15th Edition
ISBN: 9781337911979
Author: WARREN
Publisher: CENGAGE L
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Chapter 23, Problem 4MAD
Direct labor time variance
Maywood City Police uses
The police are paid $25 per hour.
The actual amount of hours per activity for the year were as follows:
- A. Determine the total budgeted cost to perform the three police activities.
- B. Determine the total actual cost to perform the three police activities.
- C. Determine the direct labor time variance.
- D. What does the time variance suggest?
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Pease Contractors is a local home remodeling company. In analyzing financial performance, the accountant compares actual results with a flexible budget. The standard direct labor rates used in the flexible budget are established each year at the time the annual plan is formulated and held constant for the entire year.
The standard direct labor rates in effect for the current fiscal year and the standard hours allowed for the actual output of work for August are shown in the following schedule.
Worker Classification
Standard Direct Labor Rate per Hour
Standard Direct Labor-Hours Allowed for Output
Supervisor
$ 50
1,800
Skilled
30
2,250
General
20
4,950
The actual direct labor-hours worked and the actual direct labor rates per hour experienced for the month of August were as follows.
Worker Classification
Actual Direct Labor Rate per Hour
Actual Direct Labor-Hours
Supervisor
$ 54
2,112
Skilled
32
2,112
General
18
5,376
Required:
Calculate the dollar…
Pease Contractors is a local home remodeling company. In analyzing financial performance, the accountant compares actual results with a flexible budget. The standard direct labor rates used in the flexible budget are established each year at the time the annual plan is formulated and held constant for the entire year.
The standard direct labor rates in effect for the current fiscal year and the standard hours allowed for the actual output of work for August are shown in the following schedule.
Worker Classification
Standard Direct Labor Rate per Hour
Standard Direct Labor-Hours Allowed for Output
Supervisor
$ 50
1,800
Skilled
30
2,250
General
20
4,950
The actual direct labor-hours worked and the actual direct labor rates per hour experienced for the month of August were as follows.
Worker Classification
Actual Direct Labor Rate per Hour
Actual Direct Labor-Hours
Supervisor
$ 54
2,112
Skilled
32
2,112
General
18
5,376
Required:
Calculate the dollar…
Snyders Kennel uses tenant-days as its measure of activity, an animal housed in the kennel for one day is counted as one tenant-day. During October, the kennel budgeted for 2,600 tenant.days, but its actual level of activity was 2,610 tenant-days. The kernel has provided the following data concerning the formulas to be used in its budgeting:
Fixed element per month
Variable element per tenant-day
Revenue
-
27.20
Wages and salaries
3300
5.20
Expendables
800
9.40
Facility expenses
8600
2.40
Adminstrative expenses
6600
0.30
Total Expenses
19300
17.30
The activity variance for wages and salaries in October would be closest to:
Select one:
a.
$52 U
b.
$652 F
c.
$52 F
d.
$652 U
Chapter 23 Solutions
Financial and Managerial Accounting - CengageNow
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY