Question
In: Accounting
Direct labor variance La Batre Bicycle company manufactures commuter bicycles from recycled materials. The following data...
Direct labor variance
La Batre Bicycle company manufactures commuter bicycles from recycled materials. The following data for july of the current year are available:
Quantity of direct labor used 760 hr
Actual rate for direct labor. $11.2 per hr.
Bicycles completed in April. 360 bicycles
Standard direct labor per bicycle. 2 hrs.
standard rate for direct labor. $11.4 per hr.
a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavaroable variance as a positive number:
direct labor rate variance. $. Favorable/unfavorable
direct labor time variance. $. Favorable/Unfavorable
total direct labor Cost Variance. $. Favorable/Unfavorable
b. How much direct labor should be debited to work in process?
Solutions
Expert Solution
- All working forms part of the answer
- Workings
|
Actual DATA for |
360 |
units |
|
|
Quantity (AQ) |
Rate (AR) |
Actual Cost |
|
|
Direct labor |
760 |
$ 11.20 |
$ 8,512.00 |
|
Standard DATA for |
360 |
units |
|
|
Quantity (SQ) |
Rate (SR) |
Standard Cost |
|
|
[A] |
[B] |
[A x B] |
|
|
Direct labor |
( 2 hrs x 360 units)=720 hrs |
$ 11.40 |
$ 8,208.00 |
- Answers
--Requirement ‘a’
|
Labor Rate Variance |
||||||
|
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Labor Hours |
|
( |
$ 11.40 |
- |
$ 11.20 |
) |
x |
760 |
|
152 |
||||||
|
Variance |
$ 152.00 |
Favourable-F |
||||
|
Labour TIME Variance |
||||||
|
( |
Standard Hours |
- |
Actual Hours |
) |
x |
Standard Rate |
|
( |
720 |
- |
760 |
) |
x |
$ 11.40 |
|
-456 |
||||||
|
Variance |
$ 456.00 |
Unfavourable-U |
||||
|
Labor Cost Variance |
||||||
|
( |
Standard Cost |
- |
Actual Cost |
) |
||
|
( |
$ 8,208.00 |
- |
$ 8,512.00 |
) |
||
|
-304 |
||||||
|
Variance |
$ 304.00 |
Unfavourable-U |
||||
--Requirement ‘b’
Direct Labor that is to be debited to Work in Process = Standard direct labor cost = $ 8,208 [see working]
ekkarill92 answered 2 years agoRelated Solutions
Direct Labor Variances La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following data...
Direct Labor Variances
La Batre Bicycle Company manufactures commuter bicycles from
recycled materials. The following data for July of the current year
are available:
Quantity of direct labor used
550 hrs.
Actual rate for direct labor
$13.4 per hr.
Bicycles completed in April
260 bicycles
Standard direct labor per bicycle
2 hrs.
Standard rate for direct labor
$13.7 per hr.
a. Determine the direct labor rate variance,
direct labor time variance, and total direct labor cost variance.
Enter a favorable...
Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for...
Direct Labor Variances
Glacier Bicycle Company manufactures commuter bicycles from
recycled materials. The following data for October of the current
year are available:
Quantity of direct labor used
550 hrs.
Actual rate for direct labor
$12.80 per hr.
Bicycles completed in October
260 bicycles
Standard direct labor per bicycle
2 hrs.
Standard rate for direct labor
$13.10 per hr.
a. Determine for October the direct labor rate
variance, direct labor time variance, and total direct labor cost
variance. Enter a...
Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October are available:...
Glacier Bicycle Company manufactures commuter bicycles from
recycled materials. The following data for October are
available:
Quantity of direct labor used
5,000 hrs.
Actual rate for direct labor
$22.75 per hr.
Bicycles completed in October
800 bicycles
Standard direct labor per bicycle
6.0 hrs.
Standard rate for direct labor
$24.00 per hr.
a. Determine for October the direct labor rate
variance, direct labor time variance, and total direct labor cost
variance. Enter a favorable variance as a negative number using...
Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing...
Direct Materials and Direct Labor Variance Analysis
Shasta Fixture Company manufactures faucets in a small
manufacturing facility. The faucets are made from brass.
Manufacturing has 40 employees. Each employee presently provides 40
hours of labor per week. Information about a production week is as
follows:
Standard wage per hour
$14.40
Standard labor time per unit
20 min.
Standard number of lbs. of brass
1.5 lbs.
Standard price per lb. of brass
$11.25
Actual price per lb. of brass
$11.50
Actual...
Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing...
Direct Materials and Direct Labor Variance Analysis
Shasta Fixture Company manufactures faucets in a small
manufacturing facility. The faucets are made from brass.
Manufacturing has 50 employees. Each employee presently provides 32
hours of labor per week. Information about a production week is as
follows:
Standard wage per hour
$15.00
Standard labor time per unit
20 min.
Standard number of lbs. of brass
2.1 lbs.
Standard price per lb. of brass
$12.00
Actual price per lb. of brass
$12.25
Actual...
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small manufacturing...
Direct Materials and Direct Labor Variance Analysis
Abbeville Fixture Company manufactures units in a small
manufacturing facility. The units are made from brass.
Manufacturing has 40 employees. Each employee presently provides 35
hours of labor per week. Information about a production week is as
follows:
Standard wage per hour
$11.4
Standard labor time per unit
20 min.
Standard number of lbs. of brass
1.8 lbs.
Standard price per lb. of brass
$12.5
Actual price per lb. of brass
$12.75
Actual...
Calculator Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small...
Calculator
Direct Materials and Direct Labor Variance Analysis
Abbeville Fixture Company manufactures units in a small
manufacturing facility. The units are made from brass.
Manufacturing has 30 employees. Each employee presently provides 32
hours of labor per week. Information about a production week is as
follows:
Standard wage per hour
$16.2
Standard labor time per unit
20 min.
Standard number of lbs. of brass
2.1 lbs.
Standard price per lb. of brass
$9.75
Actual price per lb. of brass
$10...
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small manufacturing...
Direct Materials and Direct Labor Variance Analysis
Abbeville Fixture Company manufactures units in a small
manufacturing facility. The units are made from brass.
Manufacturing has 30 employees. Each employee presently provides 32
hours of labor per week. Information about a production week is as
follows:
Standard wage per hour
$16.2
Standard labor time per unit
20 min.
Standard number of lbs. of brass
2.1 lbs.
Standard price per lb. of brass
$9.75
Actual price per lb. of brass
$10
Actual...
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small manufacturing...
Direct Materials and Direct Labor Variance Analysis
Abbeville Fixture Company manufactures units in a small
manufacturing facility. The units are made from brass.
Manufacturing has 60 employees. Each employee presently provides 35
hours of labor per week. Information about a production week is as
follows:
Standard wage per hour
$14.4
Standard labor time per unit
15 min.
Standard number of lbs. of brass
1.2 lbs.
Standard price per lb. of brass
$11.5
Actual price per lb. of brass
$11.75
Actual...
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small manufacturing...
Direct Materials and Direct Labor Variance Analysis
Abbeville Fixture Company manufactures units in a small
manufacturing facility. The units are made from brass.
Manufacturing has 50 employees. Each employee presently provides 32
hours of labor per week. Information about a production week is as
follows:
Standard wage per hour
$15
Standard labor time per unit
20 min.
Standard number of lbs. of brass
1.2 lbs.
Standard price per lb. of brass
$10.75
Actual price per lb. of brass
$11
Actual...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Case Study: Personal Beliefs in the Workplace Don Shakow was a prominent professional who worked in...
- 1: Competency framework usage is the modern best practice in management. What is meant by competency...
- A 19.34 g mixture of sugar (C12H22O11) and table salt (NaCl) is dissolved in 231 g...
- Young and Company claims that its pressurized diving bell will, on average, maintain its integrity to...
- 1) Alternative compiled code sequence using instructions in classes A, B, C. What is the average...
- An asset is purchased on January 1 for $48,700. It is expected to have a useful...
- Do we have any online or offline tool to convert c and cpp programs into MIPS...
ADVERTISEMENT