Question
In: Accounting
Bartels Corp. produces woodcarvings. It takes three hours of direct labor to produce a carving. Bartels'...
Bartels Corp. produces woodcarvings. It takes three hours of direct
labor to produce a carving. Bartels' standard labor cost is $11.75
per hour. During September, Bartels produced 10,000 carvings and
used 29,140 hours of direct labor at a total cost of $348,500.
Indicate labor rate variance, labor effiecieny variance, and total
labor variance for the month of September and whether or not
they're favorable or unfavorable. Show all work for each variance
and state reasons for both the rate variance amd efficiency
variance.
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ekkarill92 answered 2 years agoRelated Solutions
1. Hassock Corp. produces woven wall hangings. It takes 4 hours of direct labor to produce...
1. Hassock Corp. produces woven wall hangings. It takes 4 hours
of direct labor to produce a single wall hanging. Hassock’s
standard labor cost is $16 per hour. During August, Hassock
produced 14,900 units and used 60,170 hours of direct labor at a
total cost of $960,720. What is Hassock’s labor efficiency variance
for August?
$9,120 unfavorable.
$7,120 unfavorable.
$4,000 favorable.
$9,120 favorable.
$11,120 unfavorable.
2. Based on a predicted level of production and sales of 23,000
units, a company...
Overhead is applied on the basis of direct labor hours. Three direct labor hours are required...
Overhead is applied on the basis of
direct labor hours. Three direct labor hours are required for each
product unit. Planned production for the period was set at 8,000
units. Manufacturing overhead for the period is budgeted at
$204,000, of which 30 percent is fixed. The 26,200 hours worked
during the period resulted in production of 8,500 units.
Manufacturing overhead cost incurred was $220,500.
Required:
a. Calculate the overhead spending
variance:
b. Calculate the overhead efficiency variance:
c. Calculate the...
Hanson Corp. produces three products, and is currently facing a labor shortage – only 3,180 hours...
Hanson Corp. produces
three products, and is currently facing a labor shortage – only
3,180 hours are available this month. The selling price, costs, and
labor requirements of the three products are as follows:
Product A
Product B
Product C
Selling
price
$
98.00
$
70.00
$
88.00
Variable cost
per unit
$
57.00
$
29.00
$
48.00
Direct labor
hours per unit
3.4
4.8
3.8
a. What is the contribution margin per unit for
each product?
A-
B-
C-...
Hanson Corp. produces three products, and is currently facing a labor shortage – only 4,200 hours...
Hanson Corp. produces
three products, and is currently facing a labor shortage – only
4,200 hours are available this month. The selling price, costs,
labor requirements, and demand of the three products are as
follows:
Product A
Product B
Product C
Selling
price
$
59.00
$
38.00
$
51.00
Variable cost
per unit
$
53.00
$
30.00
$
47.00
Direct labor
hours per unit
1.5
2.7
2.0
Demand
1,600
1,400
1,600
a. In
what order should Hanson prioritize production of...
MAnufacturing overhead is applied on the basis of direct labor hours. The direct labor hours for...
MAnufacturing overhead is applied on the basis of direct labor
hours. The direct labor hours for the period are 500 and the
estimated manufacturing overhead is 2000. actual direct labor hours
were 160 and actual overhead was 1000.
Compute the manufacturing overhead applied during this
period.
Glavine & Co. produces a single product, each unit of which requires three direct labor hours...
Glavine & Co. produces a single product, each unit of which
requires three direct labor hours (DLHs). Practical capacity (for
setting the factory overhead application rate) is 60,000 DLHs, on
an annual basis. The information below pertains to the most recent
year:
Standard direct labor hours (DLHs) per unit produced
3.00
Practical capacity, in DLHs (per year)
60,000
Variable overhead efficiency variance
$
20,000
unfavorable (U)
Actual production for the year
17,000
units
Budgeted fixed manufacturing overhead
$
1,200,000
Standard...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours.
For the month of May, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following overhead budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
36,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
21,600
Indirect labor
36,000
Power
7,200
Maintenance
3,600
Total variable costs
68,400
Fixed overhead costs
Rent of factory building
20,000
Depreciation—Machinery...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours.
For the month of May, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following overhead budget:
Operating Levels
Overhead
Budget
80%
Production in
units
10,000
Standard direct
labor hours
26,000
Budgeted
overhead
Variable
overhead costs
Indirect
materials
$
15,600
Indirect
labor
26,000
Power
7,800
Maintenance
2,600
Total variable
costs
52,000
Fixed overhead
costs
Rent of factory
building
22,000
Depreciation—Machinery...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours.
For the month of May, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following overhead budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
30,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
21,000
Indirect labor
30,000
Power
6,000
Maintenance
3,000
Total variable costs
60,000
Fixed overhead costs
Rent of factory building
14,000
Depreciation—Machinery...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours.
For the month of May, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following overhead budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
27,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
16,200
Indirect labor
27,000
Power
5,400
Maintenance
5,400
Total variable costs
54,000
Fixed overhead costs
Rent of factory building
23,000
Depreciation—Machinery...
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