Question
In: Accounting
Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Milar Corporation makes a product with the following standard costs:
| Standard Quantity or Hours | Standard Price or Rate | ||||||||||
| Direct materials | 7.7 | pounds | $ | 4.00 | per pound | ||||||
| Direct labor | 0.1 | hours | $ | 20.00 | per hour | ||||||
| Variable overhead | 0.1 | hours | $ | 4.00 | per hour | ||||||
In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The labor rate variance for January is:
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Answer
--Requirement: Labor Rate variance
| Labor Rate Variance | ||||||
| ( | Standard Rate | - | Actual Rate = $4473 /210 hrs | ) | x | Actual Labor Hours |
| ( | $ 20.00 | - | $ 21.30 | ) | x | 210 |
| -273 | ||||||
| Variance | $ 273.00 | Unfavourable-U | ||||
ekkarill92 answered 2 years agoRelated Solutions
Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or...
Corporation makes a product with the following standard
costs:
Standard Quantity or Hours
Standard Price or Rate
Direct materials
10.4
kilos
$
7.90
per kilo
Direct labor
0.3
hours
$
39.00
per hour
Variable overhead
0.3
hours
$
7.90
per hour
The company reported the following results concerning this
product in August.
Actual output
5,100
units
Raw materials used in production
30,930
kilos
Purchases of raw materials
33,500
kilos
Actual direct labor-hours
1,120
hours
Actual cost of raw materials purchases...
Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or...
Corporation makes a product with the following standard
costs:
Standard Quantity or Hours
Standard Price or Rate
Direct materials
2.0
grams
$
7.00
per gram
Direct labor
0.8
hours
$
16.00
per hour
Variable overhead
0.8
hours
$
4.00
per hour
The company produced 4,500 units in January using 10,260 grams
of direct material and 2,240 direct labor-hours. During the month,
the company purchased 10,830 grams of the direct material at $7.20
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Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following
standard costs:
Standard Quantity or Hours
Standard Price or Rate
Standard Cost Per Unit
Direct materials
7.2
ounces
$
2.00
per ounce
$
14.40
Direct labor
0.3
hours
$
16.00
per hour
$
4.80
Variable overhead
0.3
hours
$
5.00
per hour
$
1.50
The company reported the following results concerning this
product in June.
Originally budgeted output
2,600
units
Actual output
2,200
units
Raw materials used in production
20,400
ounces
Purchases...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following
standard costs:
Standard Quantity or
Hours
Standard Price or
Rate
Standard Cost Per
Unit
Direct materials
6.5
ounces
$
2.00
per
ounce
$
13.00
Direct labor
0.2
hours
$
23.00
per hour
$
4.60
Variable overhead
0.2
hours
$
6.00
per hour
$
1.20
The company reported the following results concerning this
product in June.
Originally
budgeted output
2,700
units
Actual
output
2,800
units
Raw materials
used in production
19,380
ounces
Purchases...
Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Kartman Corporation makes a product with the following standard
costs:
Standard Quantity or
Hours
Standard Price or
Rate
Standard Cost Per Unit
Direct materials
6.8 pounds
$ 7.30 per pound
$ 49.64
Direct labor
0.5 hours
$27.00 per hour
$ 13.50
Variable overhead
0.5 hours
$4.30 per hour
$ 2.15
In June the company's budgeted production was 3,700 units but
the actual production was 3,800 units. The company used 22,450
pounds of the direct material and 2,320 direct labor-hours to...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following
standard costs:
Standard Quantity or Hours
Standard Price or Rate
Standard Cost Per Unit
Direct materials
5.5
ounces
$
2.00
per ounce
$
11.00
Direct labor
0.4
hours
$
11.00
per hour
$
4.40
Variable overhead
0.4
hours
$
8.00
per hour
$
3.20
The company reported the following results concerning this
product in June.
Originally budgeted output
4,100
units
Actual output
4,100
units
Raw materials used in production
20,500
ounces
Purchases...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following
standard costs:
Standard Quantity or Hours
Standard Price or Rate
Standard Cost Per Unit
Direct materials
6.8
ounces
$
4.00
per ounce
$
27.20
Direct labor
0.5
hours
$
12.00
per hour
$
6.00
Variable overhead
0.5
hours
$
7.00
per hour
$
3.50
The company reported the following results concerning this
product in June.
Originally budgeted output
2,200
units
Actual output
2,700
units
Raw materials used in production
16,900
ounces
Purchases...
Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Oddo Corporation makes a product
with the following standard costs:
Standard
Quantity or Hours
Standard Price
or Rate
Standard Cost
Per Unit
Direct
materials
3.0
ounces
$8.90 per
ounce
$26.70
Direct labor
0.7 hours
$25.00 per
hour
$17.50
Variable
overhead
0.6 hours
$4.00 per
hour
$2.40
The company reported the
following results concerning this product in December.
Originally budgeted
output
4,590
units
Actual output
4,390
units
Raw materials used
in production
13,490
ounces
Actual direct
labor-hours
2,954...
Gallego Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Gallego Corporation makes a product with the following standard
costs:
Standard Quantity or Hours
Standard Price or Rate
Direct materials
3.1 pounds
$6.00 per pound
Direct labor
0.8 hours
$18.00 per hour
Variable overhead
0.8 hours
$6.00 per hour
In October the company produced 3,000 units using 8,380 pounds
of the direct material and 2,610 direct labor-hours. During the
month, the company purchased 9,500 pounds of the direct material at
a total cost of $55,100. The actual direct labor cost...
Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Gilder Corporation makes a product with the following standard
costs:
Standard Quantity or Hours
Standard Price or Rate
Standard Cost Per Unit
Direct materials
4.0 grams
$8.00 per gram
$32.00
Direct labor
0.6 hours
$12.00 per hour
$7.20
Variable overhead
0.6 hours
$8.00 per hour
$4.80
The company reported the following results concerning this
product in June.
Originally budgeted output
7,300
units
Actual output
7,200
units
Raw materials used in production
28,340
grams
Purchases of raw materials...
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