Question
In: Accounting
Waterway Family Instruments makes cellos. During the past year, the company made 6,380 cellos even though...
Waterway Family Instruments makes cellos. During the past year,
the company made 6,380 cellos even though the budget planned for
only 5,580. The company paid its workers an average of $15 per
hour, which was $1 higher than the standard labor rate. The
production manager budgets four direct labor hours per cello.
During the year, a total of 24,790 direct labor hours were
worked.
(a) Calculate the direct labor rate and efficiency
variances. (If variance is zero, select "Not
Applicable" and enter 0 for the amounts.)
| Direct labor rate variance | $Enter a dollar amount | Select an option UnfavorableNot ApplicableFavorable | |
|---|---|---|---|
| Direct labor efficiency variance | $Enter a dollar amount | Select an option FavorableUnfavorableNot Applicable |
Solutions
Expert Solution
Solution
| Direct labor rate variance | $ 24,790 | Unfavorable | |
|---|---|---|---|
| Direct labor efficiency variance | $ 10,220 | Favorable |
Working
| Labor Rate Variance | ||||||
| ( | Standard Rate | - | Actual Rate | ) | x | Actual Labor Hours |
| ( | $ 14.00 | - | $ 15.00 | ) | x | 24790 |
| -24790 | ||||||
| Variance | $ 24,790.00 | Unfavourable-U | ||||
| Labour Efficiency Variance | ||||||
| ( | Standard Hours | - | Actual Hours | ) | x | Standard Rate |
| ( | 25520 | - | 24790 | ) | x | $ 14.00 |
| 10220 | ||||||
| Variance | $ 10,220.00 | Favourable-F | ||||
.
| Standard DATA for | 6380 | Units | |
| Quantity (SQ) | Rate (SR) | Standard Cost | |
| [A] | [B] | [A x B] | |
| Direct labor | ( 4 Hour x 6380 Units)=25520 Hour | $ 14.00 | $ 357,280.00 |
.
| Actual DATA for | 6380 | Units | |
| Quantity (AQ) | Rate (AR) | Actual Cost | |
| Direct labor | 24790 | $ 15.00 | $ 371,850.00 |
ekkarill92 answered 11 months agoRelated Solutions
Why gained derivatives such a great popularity only in the past decades, even though they are...
Why gained derivatives such a great popularity only in the past
decades, even though they are very old financial instruments. How
is it related to option pricing?
The income statement of Waterway Company is shown below. WATERWAY COMPANY INCOME STATEMENT FOR THE YEAR...
The income statement of Waterway Company is shown below.
WATERWAY COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue
$6,210,000
Cost of goods sold
Beginning inventory
$2,070,000
Purchases
4,570,000
Goods available for sale
6,640,000
Ending inventory
1,490,000
Cost of goods sold
5,150,000
Gross profit
1,060,000
Operating expenses
Selling expenses
450,000
Administrative expenses
570,000
1,020,000
Net income
$40,000
Additional information:
1.
Accounts receivable decreased $300,000 during the year.
2.
Prepaid expenses increased $170,000 during the year.
3.
Accounts...
Even though a company is run in accordance with the wishes of the majority shareholders, it...
Even though a company is run in accordance with the wishes of
the majority shareholders, it does not mean that the majority
shareholders can pass resolutions at will. The law will protect
minority shareholders when their interests are affected. The most
important question, however, is whether existing laws to protect
minority shareholders are sufficient. Equally important is whether
minority shareholders play an active role in monitoring the
company's operations, namely shareholder activism.
Discuss and critically examine the above statements. Include...
Is it important for a company to follow a strict budget even though they may be...
Is it important for a company to follow a strict budget even
though they may be experiencing phenomenal profits? Do you think
that there will be a bias towards greed when creating the budget
for this company? Explain.
How does management greed influence budget decisions?
Is it important for a company to follow a strict budget even though they may be...
Is it important for a company to follow a strict budget even
though they may be experiencing phenomenal profits? Do you think
that there will be a bias towards greed when creating the budget
for this company? Explain.
How does management greed influence budget decisions?
Please consider each of the questions separately in this post.
It is important for you to understand the value of the budget as a
blueprint for the business – even in times of exceptional “good...
Sturdy Bike Company makes the frames used to build its bicycles. During year 2, Sturdy made...
Sturdy Bike Company makes the frames used to build its bicycles.
During year 2, Sturdy made 20,000 frames; the costs incurred
follow.
Unit-level materials costs (20,000 units × $35.00)
$
700,000
Unit-level labor costs (20,000 units × $42.50)
850,000
Unit-level overhead costs (20,000 × $10.00)
200,000
Depreciation on manufacturing equipment
120,000
Bike frame production supervisor’s salary
70,000
Inventory holding costs
290,000
Allocated portion of facility-level costs
500,000
Total costs
$
2,730,000
Sturdy has an opportunity to purchase frames for $92.50...
Waterway Construction Company began work on a $417,400 construction contract in 2017. During 2017, Waterway incurred...
Waterway Construction Company began work on a $417,400
construction contract in 2017. During 2017, Waterway incurred costs
of $280,300, billed its customer for $216,200, and collected
$176,500. At December 31, 2017, the estimated additional costs to
complete the project total $162,000.
Prepare Waterway’s journal entry to record profit or loss, if any,
using (a) the percentage-of-completion method and (b) the
completed-contract method.
Part A. The company luncheon was held. The event was a success, even though there were...
Part A. The company luncheon was held. The event was a success,
even though there were some glitches in the planning and some minor
conflicts. All in all, everything seemed to flow smoothly on the
day of the event. Now the event is over. Imagine you were the
project manager on the project. Describe how you would facilitate
post-project meetings with staff, customers, stakeholders, etc.?
Why would you approach the meetings in the manner specified? Part
B. It's the end...
Even though episiotomy procedures are declining, why might this medical procedure be performed before or during...
Even though episiotomy procedures are declining, why
might this medical procedure be performed before or during
childbirth?
2). Name and explain the function of the various
hormones that regulate lactation. Where are they produced, and how
would you summarize their function and their influence on
lactation?
In 1923 during Prohibition, the market for 60 day fermented grape juice was legal, even though...
In 1923 during Prohibition, the market for 60 day fermented
grape juice was legal, even though it often had up to 12% alcohol
content. For buyers, a high quality bottle of juice was worth
$6.65, while a low quality one was only worth $3.33. Sellers valued
good bottles at $4.99 and bad ones at $1.96. If an uninformed buyer
was willing to pay a price of exactly $4.99 for a bottle of juice,
then what was the fraction of good...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- #Python 5. Write function called evaluate() that evaluates the following Python expressions or assignments as specified:...
- Suggest journal, research paper link reference. i need this as reference for writing a research with...
- Cryptography is used heavily in internet communications. True or false? Explain
- Suppose Rialto is the only movie cinema in a small college town, so it is essentially...
- With VMI, members of the supply chain share planning, demand, forecasting, and inventory information.
- Large lots are desirable in supply chain coordination despite increasing holding costs.
- ***Convert the C++ to Python*** #include <iostream> using std::cout; using std::cin; using std::endl; int charClass; char...
ADVERTISEMENT