Question
In: Accounting
Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance Guillermo's Oil and Lube...
Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance
Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 18 minutes and 6.2 quarts of oil are used. In June, Guillermo's Oil and Lube had 980 oil changes.
Guillermo's Oil and Lube Company provided the following
information for the production of oil changes during the month of
June:
Actual number of oil changes performed: 980
Actual number of direct labor hours worked: 286 hours
Actual rate paid per direct labor hour: $15.00
Standard rate per direct labor hour: $14.00
Required:
1. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June using the formula approach.
| Direct labor rate variance (LRV) | $fill in the blank 1 | |
| Direct labor efficiency variance (LEV) | $fill in the blank 3 |
2. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June.
| Direct labor rate variance (LRV) | $fill in the blank 5 | |
| Direct labor efficiency variance (LEV) | $fill in the blank 7 |
3. Calculate the total direct labor variance
for oil changes for June.
$fill in the blank 9
4. What if the actual wage rate paid in June was $13.00? What impact would that have had on the direct labor rate variance (LRV)? On the direct labor efficiency variance (LEV)? Indicate what the new variances would be below. If required, round your answers to the nearest cent.
Direct labor rate variance (LRV):
$fill in the blank 11
Direct labor efficiency variance (LEV):
$fill in the blank 13
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance Guillermo's Oil and Lube...
Calculating the Direct Labor Rate Variance and the Direct Labor
Efficiency Variance
Guillermo's Oil and Lube Company is a service company that
offers oil changes and lubrication for automobiles and light
trucks. On average, Guillermo has found that a typical oil change
takes 30 minutes and 6.2 quarts of oil are used. In June,
Guillermo's Oil and Lube had 980 oil changes.
Guillermo's Oil and Lube Company provided the following
information for the production of oil changes during the month...
Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance Guillermo's Oil and Lube...
Calculating the Direct Labor Rate Variance and the Direct Labor
Efficiency Variance
Guillermo's Oil and Lube Company is a service company that
offers oil changes and lubrication for automobiles and light
trucks. On average, Guillermo has found that a typical oil change
takes 24 minutes and 6.2 quarts of oil are used. In June,
Guillermo's Oil and Lube had 980 oil changes.
Guillermo's Oil and Lube Company provided the following
information for the production of oil changes during the month...
Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance Guillermo's Oil and Lube...
Calculating the Direct Labor Rate Variance and the Direct Labor
Efficiency Variance
Guillermo's Oil and Lube Company is a service company that
offers oil changes and lubrication for automobiles and light
trucks. On average, Guillermo has found that a typical oil change
takes 24 minutes and 6.2 quarts of oil are used. In June,
Guillermo's Oil and Lube had 980 oil changes.
Guillermo's Oil and Lube Company provided the following
information for the production of oil changes during the month...
Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance Guillermo's Oil and Lube...
Calculating the Direct Materials Price Variance and the Direct
Materials Usage Variance
Guillermo's Oil and Lube Company is a service company that
offers oil changes and lubrication for automobiles and light
trucks. On average, Guillermo has found that a typical oil change
takes 22 minutes and 6.6 quarts of oil are used. In June,
Guillermo's Oil and Lube had 900 oil changes.
Guillermo's Oil and Lube Company provided the following
information for the production of oil changes during the month...
Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance Guillermo's Oil and Lube...
Calculating the Direct Materials Price Variance and the Direct
Materials Usage Variance
Guillermo's Oil and Lube Company is a service company that
offers oil changes and lubrication for automobiles and light
trucks. On average, Guillermo has found that a typical oil change
takes 30 minutes and 6.4 quarts of oil are used. In June,
Guillermo's Oil and Lube had 920 oil changes.
Guillermo's Oil and Lube Company provided the following
information for the production of oil changes during the month...
Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance Guillermo's Oil and Lube...
Calculating the Direct Materials Price Variance and the Direct
Materials Usage Variance
Guillermo's Oil and Lube Company is a service company that
offers oil changes and lubrication for automobiles and light
trucks. On average, Guillermo has found that a typical oil change
takes 23 minutes and 6.8 quarts of oil are used. In June,
Guillermo's Oil and Lube had 920 oil changes.
Guillermo's Oil and Lube Company provided the following
information for the production of oil changes during the month...
Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance 9.1: Guillermo has found...
Calculating the Direct Labor Rate Variance and the Direct Labor
Efficiency Variance
9.1: Guillermo has found a typical oil change takes 24 minutes
and 6.2 quarts of oil are used. In June, Guillermo had 980 oil
changes.
Refer to Cornerstone Exercise 9.1. Guillermo's Oil and Lube
Company provided the following information for the production of
oil changes during the month of June:
Actual number of oil changes performed: 980
Actual number of direct labor hours worked: 386 hours
Actual rate...
Calculate total sales mix variance, Direct Materials Variance Price, Direct Materials Variance Efficiency, Dircet Labor Variance...
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Rate & Efficiency, Variable overhead variance spending, and
Selling and General Admin Variance.
Scooter's Inc
Summary of Standard Costs
Summary of Standard Costs
Deluxe
Beginner
Assembly kit per scooter
$
400
$ 200
Direct labor hours per scooter
3
1
Direct labor rate per hour
$
25
$
15
Variable overhead rate per scooter
$
35
$
35
Sales Price
2017
2018...
show calculation and explanation solving Direct Labor Pricce Variance and efficiency variance and the total variance....
show calculation and explanation solving Direct Labor Pricce
Variance and efficiency variance and the total variance. if they
are favorable or unfavorable?
AP x AQ= $350,000
SP x AQ= $315,000
SP x SQ= $450,000
Direct Labor Efficiency Variance, Direct Labor Mix and Yield Variances Vet-Pro, Inc., produces a veterinary grade...
Direct Labor Efficiency Variance, Direct Labor Mix and Yield
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Vet-Pro, Inc., produces a veterinary grade anti-anxiety mixture
for pets with behavioral problems. Two chemical solutions, Aranol
and Lendyl, are mixed and heated to produce a chemical that is sold
to companies that produce the anti-anxiety pills. The mixture is
produced in batches and has the following standards:
Direct Material
Standard
Mix
Standard Unit Price
Standard Cost
Aranol
3,000
gallons
$4.00
per gallon
$
12,000
Lendyl
17,000
6.00
102,000
Total...
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