Question
In: Accounting
The following data are given for Harry Company: Budgeted production 1,056 units Actual production 900 units...
The following data are given for Harry Company:
| Budgeted production | 1,056 units |
| Actual production | 900 units |
| Materials: | |
| Standard price per ounce | $1.758 |
| Standard ounces per completed unit | 11 |
| Actual ounces purchased and used in production | 10,197 |
| Actual price paid for materials | $20,904 |
| Labor: | |
| Standard hourly labor rate | $14.09 per hour |
| Standard hours allowed per completed unit | 4.4 |
| Actual labor hours worked | 4,635 |
| Actual total labor costs | $75,319 |
| Overhead: | |
| Actual and budgeted fixed overhead | $1,054,000 |
| Standard variable overhead rate | $24.00 per standard labor hour |
| Actual variable overhead costs | $129,780 |
| Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) | |
The direct labor rate variance is
a.$19,522.60 favorable
b.$19,522.60 unfavorable
c.$10,011.60 unfavorable
d.$10,011.60 favorable
Solutions
Expert Solution
| Ans. | Option C $10,011.60 unfavorable | |
| *First of all, we need to calculate the actual labor rate for further calculations. | ||
| *Actual rate = Actual labor cost / Actual hours | ||
| $75,319 / 4,635 | ||
| $16.25 | per direct labor hour | |
| *Now we can calculate the direct labor rate variance. | ||
| Direct Labor Rate variance = (Standard rate - Actual rate) * Actual hours | ||
| ($14.09 - $16.25) * 4,635 | ||
| -$2.16 * 4,635 | ||
| -$10,011.60 | or $10,011.60 unfavorable | |
| *The standard labor rate is lower than the actual so the variance is unfavorable. | ||
ekkarill92 answered 1 year agoRelated Solutions
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12 Actual ounces purchased and used in production 12,731 Actual
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The following data is given for the XYZ Company: Budgeted production  
The following data is given for the
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26,000 units
Actual
production
27,500 units
Materials:
Standard price per
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Actual ounces purchased and used in
production
228,000
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materials
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rate
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You are given the following budgeted and actual data for the
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You are given the following budgeted and actual data for the
Grey Company for each of the months January through June of the
current year.
In December of the prior year, sales were forecasted as follows:
January, 93 units; February, 88 units; March, 95 units; April, 100
units; May, 107 units; June, 115 units. In January of the current
year, sales for the months February through June were reforecasted
as follows: February, 83 units; March, 95 units; April, 95 units;...
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The budgeted and actual results for June 2020 are as
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Actual
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150,000
150,500
Direct material A
300,000m2
£675,000
316,050m2
£695,310
Direct material B
900,000
£18,000
1,053,500
£21,070
Direct labour
37,500 hours
£318,750
37,625 hours
£323,575
Fixed overheads
£287,500
£300,623.75
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of production with the standard cost of production.
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Bowling Company budgeted the following amounts:
Variable costs of production:
Direct materials
3 pounds @ $0.60 per pound
Direct labor
0.5 hr. @ $16.00 per hour
VOH
0.5 hr. @ $2.20
FOH:
Materials handling
$6,200
Depreciation
$2,600
At the end of the year, Bowling had the following actual costs
for production of 3,800 units:
Direct materials
$6,800
Direct labor
30,500
VOH
4,200
FOH:
Materials handling
6,300
Depreciation
$2,600
Required:
1....
Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts:...
Performance Report Based on Budgeted and Actual Levels of
Production
Bowling Company budgeted the following amounts:
Variable costs of production:
Direct materials
3 pounds @ $0.60 per pound
Direct labor
0.5 hr. @ $16.00 per hour
VOH
0.5 hr. @ $2.20
FOH:
Materials handling
$6,200
Depreciation
$2,600
At the end of the year, Bowling had the following actual costs
for production of 3,800 units:
Direct materials
$6,800
Direct labor
30,500
VOH
4,200
FOH:
Materials handling
6,300
Depreciation
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Required:
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Direct labor
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VOH
0.5 hr. @ $2.20
FOH:
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Depreciation
$2,600
At the end of the year, Bowling had the following actual costs
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30,500
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4,200
FOH:
Materials handling
6,300
Depreciation
$2,600
Required:
1....
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