Question
In: Accounting
Javonte Co. set standards of 3 hours of direct labor per unit of product and $16.80...
Javonte Co. set standards of 3 hours of direct labor per unit of
product and $16.80 per hour for the labor rate. During October, the
company uses 21,500 hours of direct labor at a $365,500 total cost
to produce 7,400 units of product. In November, the company uses
25,500 hours of direct labor at a $434,775 total cost to produce
7,800 units of product.
AH = Actual Hours
SH = Standard Hours
AR = Actual Rate
SR = Standard Rate
(1) Compute the direct labor rate variance, the
direct labor efficiency variance, and the total direct labor cost
variance for each of these two months. Classify each variance as
favorable or unfavorable.
(2) Javonte investigates variances of more than 5% of
actual direct labor cost. Which direct labor variances will the
company investigate further?
Solutions
ekkarill92 answered 9 months agoRelated Solutions
The standards for product G78V specify 6.1 direct labor-hours per unit at $14.10 per direct labor-hour....
The standards for product G78V specify 6.1 direct labor-hours
per unit at $14.10 per direct labor-hour. Last month 1,800 units of
product G78V were produced using 11,030 direct labor-hours at a
total direct labor wage cost of $146,220.
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?
(Indicate the effect of each variance by selecting "F"
for favorable, "U" for unfavorable, and "None" for no effect (i.e.,
zero...
12. The per-unit standards for direct labor are 1.5 direct labor hours at $15 per hour....
12.
The per-unit standards for direct labor are 1.5 direct labor
hours at $15 per hour. If in producing 3400 units, the actual
direct labor cost was $69750 for 4500 direct labor hours worked,
the total direct labor variance is
$2250 unfavorable.
$6750 unfavorable.
$6750 favorable.
$3400 unfavorable.
13. A company purchases 10000 pounds of materials. The materials
price variance is $7000 favorable. What is the difference between
the standard and actual price paid for the materials?
$1.43
$0.70
$7.00...
Midgley Corporation makes a product whose direct labor standards are 1.1 hours per unit and $12.00...
Midgley Corporation makes a product whose direct labor standards
are 1.1 hours per unit and $12.00 per hour. In April, the company
produced 5,200 units using 5,360 direct labor-hours. The actual
direct labor cost was $61,910. The labor rate variance for April
is: rev: 11_01_2016_QC_CS-68333 $2,410 U $2,571 F $2,410 F $2,571
U
The following labor standards have been established for a particular product: Standard labor-hours per unit of...
The following labor standards have been established for
a particular product:
Standard labor-hours per unit of output
9.0
hours
Standard labor rate
$
16.60
per hour
The following data pertain to operations concerning the product
for the last month:
Actual hours worked
9,600
hours
Actual total labor cost
$
156,480
Actual output
950
units
What is the labor rate variance for the month?
$17,115 U
$14,550 F
$2,880 F
$14,550 U
The following labor standards have been established for a particular product: Standard labor-hours per unit of...
The following labor standards have been established for a
particular product:
Standard labor-hours per unit of output
8.5
hours
Standard labor rate
$
12.30
per hour
The following data pertain to operations concerning the product
for the last month:
Actual hours worked
6,300
hours
Actual total labor cost
$
74,970
Actual output
800
units
What is the labor efficiency variance for the month?
The following labor standards have been established for a particular product: Standard labor hours per unit...
The following labor standards have been established for a
particular product:
Standard labor hours per unit of output
4.5
hours
Standard labor rate
$
19.70
per hour
The following data pertain to operations concerning the product
for the last month:
Actual hours worked
6,500
hours
Actual total labor cost
$
130,975
Actual output
1,400
units
Required:
a. What is the labor rate variance for the
month?
b. What is the labor efficiency
variance for the month?
(Indicate the effect of each...
The following labor standards have been established for a particular product: Standard labor hours per unit...
The following labor standards have been established for a
particular product:
Standard labor hours
per unit of output
4.9
hours
Standard labor
rate
$20.70
per hours
The following data pertain to operations concerning the product
for the last month:
Actual hours
worked
7,500
hours
Actual total labor
cost
$156,000
Actual output
1,500
units
Required:
a.
What is the labor rate variance for the month? (Input
the amount as a positive value. Leave no cells blank - be certain
to enter...
12. The following labor standards have been established for a particular product: Standard labor-hours per unit...
12.
The following labor standards have been established for a
particular product:
Standard labor-hours
per unit of output
8.9
hours
Standard labor rate
$
12.70
per hour
The following data pertain to operations concerning the product
for the last month:
Actual hours
worked
6,700
hours
Actual total labor cost
$
82,410
Actual output
1,000
units
What is the labor efficiency variance for the month?
ABC Company set the following direct labor standards for its single product: standard hours standard rate...
ABC Company set the following direct labor standards for its
single product:
standard hours standard rate
direct labor 5 hours per unit $5 per hour
During June, ABC Company produced 10,100 units. Direct laborers
worked a total of 69,000 hours in June and were paid a rate of
$12.75 per hour.
Calculate the total direct labor variance for June. If the
variance is favorable, place a minus sign in front of your
answer (i.e., -5000). If the variance is unfavorable,...
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...
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