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 2 years agoRelated Solutions
The following data are given for Stringer Company: Budgeted production 959 units Actual production 1,063 units...
The following data are given for Stringer Company:
Budgeted production
959 units
Actual production
1,063 units
Materials:
Standard price per ounce
$1.9
Standard ounces per completed unit
10
Actual ounces purchased and used in
production
10,949
Actual price paid for materials
$22,445
Labor:
Standard hourly labor rate
$14.96 per hour
Standard hours allowed per completed
unit
4.6
Actual labor hours worked
5,474.45
Actual total labor costs
$83,485
Overhead:
Actual and budgeted fixed overhead
$1,186,000
Standard variable overhead rate
$27.00 per...
The following data is given for the Stringer Company: Budgeted production 954 units Actual production 1,030...
The following data is given for the Stringer Company: Budgeted
production 954 units Actual production 1,030 units Materials:
Standard price per ounce $1.92 Standard ounces per completed unit
12 Actual ounces purchased and used in production 12,731 Actual
price paid for materials $26,099 Labor: Standard hourly labor rate
$14.49 per hour Standard hours allowed per completed unit 4.8
Actual labor hours worked 5,304.5 Actual total labor costs $80,894
Overhead: Actual and budgeted fixed overhead $1,031,000 Standard
variable overhead rate $25.00...
16.The following data is given for the Stringer Company: Budgeted production 906 units Actual production 1,059...
16.The following data is given for the Stringer Company:
Budgeted production
906 units
Actual production
1,059 units
Materials:
Standard price per ounce
$1.84
Standard ounces per completed unit
10
Actual ounces purchased and used in
production
10,908
Actual price paid for materials
$22,361
Labor:
Standard hourly labor rate
$14.81 per hour
Standard hours allowed per completed
unit
4.1
Actual labor hours worked
5,453.85
Actual total labor costs
$83,171
Overhead:
Actual and budgeted fixed overhead
$1,002,000
Standard variable overhead rate
$25.00...
The following data is given for the XYZ Company: Budgeted production  
The following data is given for the
XYZ Company:
Budgeted
production
26,000 units
Actual
production
27,500 units
Materials:
Standard price per
ounce
$6.50
Standard ounces per completed
unit
8
Actual ounces purchased and used in
production
228,000
Actual price paid for
materials
$1,504,800
Labor:
Standard hourly labor
rate
$22 per hour
Standard hours allowed per completed
unit
6.6
Actual labor hours
worked
183,000
Actual total labor
costs
$4,016,850...
You are given the following budgeted and actual data for the Grey Company for each of...
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, 105 units; February, 100 units; March, 107 units; April,
112 units; May, 119 units; June, 127 units. In January of the
current year, sales for the months February through June were
reforecasted as follows: February, 95 units; March, 107 units;
April, 107 units;...
You are given the following budgeted and actual data for the Grey Company for each of...
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;...
The budgeted and actual results for June 2020 are as follows: Budget Actual Production (units) 150,000...
The budgeted and actual results for June 2020 are as
follows:
Budget
Actual
Production (units)
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
You are required to:
Calculate all possible variances from the information provided
above for June and use the variances to reconcile the actual cost
of production with the standard cost of production.
Evaluate the variances calculated in...
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
$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
$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
$2,600
Required:
1....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Consider the distillation of ethanol (C2H5OH) and the combustion of ethanol . Use a bullet point...
- 1.How does Economic exposure to exchange rate movements affect the capital budgeting of a firm? Provide...
- 1.Discuss the interdependence that exists between DSDLC stages. 2.How does normalization eradicate update anomalies from a...
- Reverse the following selection sort to sort the items from right to left by computing the...
- The YTM on a bond is the interest rate you earn on your investment if interest...
- identify a company that you consider as Agile and another company that is not. Explain the...
- What differences if any do you think exist in the way that a professional hotelier would...
ADVERTISEMENT