Question
In: Accounting
Given the following information in standard costing: Standard 19,400 hours at $7.40 Actual 19,200 hours at...
Given the following information in standard costing:
| Standard | 19,400 hours at $7.40 |
| Actual | 19,200 hours at $7.20 |
What is the direct labor rate variance?
Multiple Choice
-
$3,840 Unfavorable
-
$3,840 Favorable
-
$2,860 Unfavorable
-
$2,860 Favorable
Solutions
Expert Solution
| WORKING NOTES: | ||||||||
| Standard Cost | Actual Cost | |||||||
| Standard Time | Std. Rate | Total Cost | Actual Time | Act. Rate | Actual Cost | |||
| 19400 | $ 7.40 | $ 1,43,560 | 19200 | $ 7.20 | $ 1,38,240 | |||
| Hrs | Per Hours | Hrs | Per Hours | |||||
| SOLUTION : | ||||||||
| Labour Rate Variance = (Actual Rate - Standard Rate ) X Actual Hours | ||||||||
| Labour Rate Variance = ( | $ 7.20 | '-' | $ 7.40 | ) X | 19,200 | |||
| Labour Rate Variance = | $ 0.20 | X | 19,200 | |||||
| Labour Rate Variance = | 3840 | (favorable) | ||||||
| Answer = Option 2 = $ 3,840 (Favourable) | ||||||||
ekkarill92 answered 2 years agoRelated Solutions
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Seacoast Company
provided the following information about its standard costing
system for 2016:
Standard Data
Actual Data
Materials
10 lbs. @ $4 per lbs.
Produced
4,000 units
Labor
3 hrs. @ $21 per hr.
Materials purchased
50,000 lbs. for $215,000
Budgeted production
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Materials used
41,000 lbs.
Labor worked
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Instructions
Calculate the labor price variance and the labor quantity
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The following information is for the standard and actual costs for the Happy Corporation Standard Costs:...
The following information is for the standard and actual
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Standard Costs:
Budgeted units of production - 16,000 (80% of
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Standard labor hours per unit - 4
Standard labor rate - $28 per hour
Standard material per unit - 9 lbs
Standard material cost - $ 14 per pound
Standard variable overhead rate - $18 per labor
hour
Budgeted fixed overhead - $650,000
Fixed overhead rate is based on budgeted labor hours at
80% capacity....
The following information is for the standard and actual costs for Happy Corporation: Standard Costs: Budgeted...
The following information is for the standard and actual costs
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Standard Costs:
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Standard labor hours per unit 4
Standard labor rate $26 per hour
Standard material per unit 8 lbs.
Standard material cost $12 per pound
Standard variable overhead rate $15 per labor hour
Budgeted fixed overhead $640,000
Fixed overhead rate is based on budgeted labor hours at 80% (or
normal) capacity.
Actual Costs:
Actual production 16,500 units...
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Q.2. A manufacturing concern which has adopted standard costing,
furnished the following information:
Actual:
Output: 180,000 kg.
Material used: 260,000 kg.
Cost of material: SR 650,000
Standard:
Materials for 60 kg finished products: 90 kg.
Price of Materials: SR 3 per kg.
Calculate material price variance, material usage variance and
material cost variance.
standard labor hours per unit 4.5 hours standard labor rate $17 per hour actual hours worked...
standard labor hours per unit
4.5 hours
standard labor rate
$17 per hour
actual hours worked
2,000 hours
actual labor
$38,000
actual output
500 units
What is the labor efficiency variance?
$4,250 favorable
$1,500 unfavorable
$4,250 unfavorable
$1,500 favorable
Which is correct?
Mosaic Company applies overhead using machine hours and reports the following information. Actual machine hours used...
Mosaic Company applies overhead using machine hours and reports
the following information.
Actual machine hours used (AH)
4,900
hours
Standard machine hours (for actual production) (SH)
5,400
hours
Actual variable overhead rate per hour (AVR)
$
4.55
Standard variable overhead rate per hour (SVR)
$
4.40
QS 23-18A Total variable overhead cost variance LO P5
Compute the total variable overhead cost variance and classify
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8,000 pounds of material were purchased costing $ 40,000
Four hundred units were produced requiring 900 labor hours
costing $5,400 and 1, 000 pounds of material . The standard for
labor is 2 hours per unit with a wage rate of $5 per hour and for
materials 2 pounds per unit at a price of $6 per unit.
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0.069
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Prior Year (Budget and Actual)
Current Year (Budget and Actual)
Beginning Inventory (Units)
0
?
Sales (Units)
600,000
575,000
Manufactured (Units)
600,000
640,000
Selling Price ($/unit)
9.90
10.00
Variable Manufacturing Cost ($/unit)
4.80
5.00
Total Fixed Manufacturing Costs ($)
1,560,000
1,600,000
Variable Selling Cost ($/unit)
1.00
1.00
Total Fixed SG&A Costs ($)
351,000
358,000
Other information:
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Given the following information: Prior Year (Budget and Actual) Current Year (Budget and Actual) Beginning Inventory...
Given the following information:
Prior Year (Budget and Actual)
Current Year (Budget and Actual)
Beginning Inventory (Units)
0
?
Sales (Units)
600,000
575,000
Manufactured (Units)
600,000
640,000
Selling Price ($/unit)
9.90
10.00
Variable Manufacturing Cost ($/unit)
4.80
5.00
Total Fixed Manufacturing Costs ($)
1,560,000
1,600,000
Variable Selling Cost ($/unit)
1.00
1.00
Total Fixed SG&A Costs ($)
351,000
358,000
Other information:
The manufacturer uses FIFO.
All Variable costs are direct costs
Required:
Prepare an income statement for the Current Year based...
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