Question

In: Accounting

Unlike direct materials, the sum of all the direct labor variances is always equal to the...

Unlike direct materials, the sum of all the direct labor variances is always equal to the flexible budget variance.

True

False

A negative direct labor efficiency variance is considered favorable.

True

False

For direct labor, if the efficiency and rate variances are both negative, then the flexible budget variance will be unfavorable.

True

False

The total number of hours worked by employees is always directly tied to the total level of production.

True

False

Solutions

Expert Solution

ans 1 Statement is TRUE: Unlike direct materials, the sum of all of the direct labor variances is always equal to that flexible budget variance
The sum of all direct labor variance is = flexible budget variance
ans 2 Statement is TRUE : A negative direct labor efficiency variance is considered favorable
Negative efficiency variance means cost incurred is lower than expected and favorable
ans 3 Statement is False : For direct labor, if the efficiency and rate variances are both negative, then the flexible budget variance will be unfavorable
If efficiency and rate variance are negative means flexible budget varinance is favorable .
ans 4 Statement is FALSE : The total number of hours worked by employees is always directly tied to the total level of production
Their may be excess/less time spent by employee than standard hr. Therefore every time it may not tied to the total level of production

ekkarill92 answered 1 week ago
Next > < Previous

Related Solutions

Direct Materials and Direct Labor Variances
The following information is for the standard and actual costs for the Happy Corporation.Standard Costs:Budgeted units of production - 16,000 (80% of capacity)Standard labor hours per unit - 4Standard labor rate - $26 per hourStandard material per unit - 8 lbs.Standard material cost - $ 12 per poundStandard variable overhead rate - $15 per labor hourBudgeted fixed overhead - $640,000Fixed overhead rate is based on budgeted labor hours at 80% capacity.Actual Cost:Actual production - 16,500 unitsActual material purchased and used...
Describe who is responsible for the cost and efficiency variances for direct materials, direct labor, and...
Describe who is responsible for the cost and efficiency variances for direct materials, direct labor, and manufacturing overhead?
Compute the cost and efficiency variances for direct materials and direct labor. 2. For manufacturing​ overhead,...
Compute the cost and efficiency variances for direct materials and direct labor. 2. For manufacturing​ overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 3. HeadsetHeadset​'s management used better quality materials during September. Discuss the​ trade-off between the two direct material variances. Standard Cost Information Quantity Cost Direct Materials 2 parts $0.15 per part Direct Labor 0.02 hours 9.00 per hour Variable Manufacturing Overhead 0.02 hours 11.00 per hour Fixed Manufacturing Overhead...
Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 15,000...
Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 15,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $15,750 Direct labor 12,600 Total $28,350 The standard materials price is $0.7 per pound. The standard direct labor rate is $14 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $14,600 Actual...
Compute the​ price, quantity, and​ flexible-budget variances for direct materials and direct labor. Use U or...
Compute the​ price, quantity, and​ flexible-budget variances for direct materials and direct labor. Use U or F to indicate whether the variances are unfavorable or favorable. 1. Begin by completing the variance analysis below for direct materials. Be sure to label each variance as favorable or unfavorable. ​(Enter all amounts as positive numbers. Round your answers to the nearest whole​ dollar.) 2. Prepare a plausible explanation for the performance. Direct Materials Direct Labor Actual price per unit of input (lb...
Direct Materials and Direct Labor Variances At the beginning of June, Kimber Toy Company budgeted 22,000...
Direct Materials and Direct Labor Variances At the beginning of June, Kimber Toy Company budgeted 22,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $46,200 Direct labor 23,100 Total $69,300 The standard materials price is $0.60 per pound. The standard direct labor rate is $15.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $43,300 Actual...
1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor. Give...
1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor. Give a plausible explanation of why each variance occurred. 2. Suppose 7,200 square yards of materials were purchased​ (at $5.10 per square​yard), even though only 4,900 square yards were used. Suppose further that variances are identified at their most timely control​ point; accordingly, direct materials price variances are isolated and traced at the time of purchase to the purchasing department rather than to the production...
Direct Materials and Direct Labor Variances At the beginning of June, Kimber Toy Company budgeted 11,000...
Direct Materials and Direct Labor Variances At the beginning of June, Kimber Toy Company budgeted 11,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $11,550 Direct labor 6,600 Total $18,150 The standard materials price is $0.70 per pound. The standard direct labor rate is $10.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $10,700 Actual...
Direct Materials and Direct Labor Variances Zoller Company produces a dark chocolate candy bar. Recently, the...
Direct Materials and Direct Labor Variances Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (6.30 oz. @ $0.20) $1.26 Direct labor (0.08 hr. @ $18.00) 1.44 Standard prime cost $2.70 During the first week of operation, the company experienced the following actual results: Bars produced: 142,000. Ounces of direct materials purchased: 894,900 ounces at $0.21 per ounce. There are no beginning or ending inventories of...
Direct Materials, Direct Labor, and Overhead Variances, Journal Entries Algers Company produces dry fertilizer. At the...
Direct Materials, Direct Labor, and Overhead Variances, Journal Entries Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Direct materials (5 lbs. @ $2.60) $13.00 Direct labor (0.75 hr. @ $18.00) 13.50 Fixed overhead (0.75 hr. @ $4.00) 3.00 Variable overhead (0.75 hr. @ $3.00) 2.25    Standard cost per unit $31.75 Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT