36. The following data relate to direct labor costs for the current period: Standard costs 7,200 hours at $11.60 Actual costs 6,000 hours at $10.10 The direct labor time variance is a.$13,920 unfavorable b.$12,120 favorable c.$12,120 unfavorable d.$13,920 favorable

36. The following data relate to direct labor costs for the current period: Standard costs 7,200 hours at $11.60 Actual costs 6,000 hours at $10.10 The direct labor time variance is a.$13,920 unfavorable b.$12,120 favorable c.$12,120 unfavorable d.$13,920 favorable

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7PA: Ellis Companys labor information for September is as follows: A. Compute the standard direct labor...

See similar textbooks

Related questions

Q: Question 3 Ghaz Company produces two types of sound units: Deluxe and Regular. Activity data is as…

Q: Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a par value of $10 per…

A: Debit: Cash $45,000 Credit: Common stock $30,000 Credit: Paid in capital in excess of par $15,000

Q: ABC Company operates a production process to convert a single material into three separate items,…

A: The question is related to Joint Products. The physical measure approach is based on the assumption…

Q: Noncash contributions received by a not-for-profit entity should be recognized on the date received…

A: Noncash contributions received by a not-for-profit entity should be recognized on the date received…

Q: How should the fresh start reorganization value normally be determined? Select one: a.As the net…

A: Reorganization of entity: It means complete reorganization of the entities operations right from the…

Q: ABC Company uses a backflush costing system with three trigger points: Purchase of direct materials…

A: Calculation of the Value of ending Finished Goods as of the end of April::: ABC Company produced…

Q: Which of the following is not an essential characteristic of a liability? a. Legal enforceability b.…

A: Liabilities shall always form part of balance sheet. Liabilities are the debts company has taken…

Q: Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven,…

A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

Q: Matching: For each of the following situations, select the best answer concerning the…

Q: The following information was available from the inventory records of Apollo Company for January:…

A: Cost of inventory after 1st sale (January 9) = (P29,310 + P20,600) x (2,500 / 5,000) = P24,955

Q: How much is the Input VAT? (excluding presumptive) The following transactions pertaion to RTT…

A: Input VAT can be of 4 types depending on the items purchased and the seller from whom the goods are…

Q: pens Ition, 5,000 qualified dividend from a 10% owned domestic corpor tributes all of the after-tax…

A: There are different slabs of tax and tax is to paid according to the income tax slab and this is…

Q: Prepare a schedule of cash receipts for May and June. Round your intermediate computations and final…

A: Cash budget refers to a budget which shows the estimated cash flows of the company during a specific…

Q: 2. One of your employees receives an annual salary of $83,500. The only deductions from his…

A: CPP contribution refer to the contributions made by the employees and employers of Canada towards…

Q: The Company is considering two independent projects. One project involves a new product line, and…

A: Project 1 Given that Revenue = 750000 Cash expenses = 325000 Depreciation…

Q: ch Co. reported $515,000 net income for the current year. The company began the current year with…

A: Solution: Earning per share = Earnings for common stockholders / Weighted average outstanding shares…

Q: Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting…

A: Solution: To analyze special order, we need to compare revenue from special order with relevant cost…

Q: A wastewater treatment facility is planning to purchase a new sludge dryer equipment to replace its…

Q: 24. Jase Manufacturing Co.'s static budget at 7,900 units of production includes $39,500 for direct…

A: Variable costs are costs which changes with the change in activity level in total, but per unit…

Q: pment changes cash flows as fo s $5/pinball $1/pinball st: $1000 per year

A: Break even point unit is minimum number of pinballs necessary to recover the fixed cost of each…

Q: 1. Sales Revenue should increase by 2% in 2021; 3% in 2022 and decreased by 3% in 2023 and remains…

A: Business / entities carry out overall profitability projections usually at the beginning of each…

Q: The Investment in Subsidiary account of the parent is: Reported as part of non-current assets in…

A: The Investment in Subsidiary account of the parent is: Reported as part of non-current assets in the…

Q: Average age of inventory of PETRON STATEMENT OF FINANCIAL POSITION AND INCOME STATEMENT OF 3…

A: Average age of inventory means the number of days the company will take to sell its inventory. The…

Q: Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear…

A: In case of declaration of stock dividend the dividend to the shareholders is paid in form of shares…

Q: The performance of the company and individual stores in June 2018 is typical of average monthly…

A: Revenue center is one of the responsibility center. This center is a separate operating department…

Q: 8. "Hourly wage rates are an anachronism. Efficiency requires incentive-based pay and tied to…

A: The hourly wage rate is a type of wage payment system adopted by the companies. According to this…

Q: Calvin and Klein are partners sharing profits 60% and 40%. On January 1, they decided to admit…

A: The partnership comes into existence when two or more persons agree to do the business and share…

Q: On January 1, 2021, Malya Company issued 500, P1,000 face value 6%, 5-year term bonds and issued to…

A: Bonds are an instrument issued by the company on which interest is payable till maturity or…

Q: Al Rahami Shop started the year with total assets of OMR210,000 and total liabilities of OMR120,000.…

A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…

Q: ABC Company has two departments and uses a job-order costing system. ABC applies overhead in…

A: Total manufacturing cost = Cost of raw material used + Direct labor cost + Total Applied overhead

Q: Which one of the following unsecured liabilities has the highest priority when an insolvent company…

A: Insolvency refers to the company being unable to pay its all its debts or when the liabilities of a…

Q: When a partner retires from the partnership and is given more cash than his adjusted capital, how…

A: Solution: When a partner retires from the partnership and is given more cash than his adjusted…

Q: Question 2. Which of the following are the conditions that must be met for something to be an asset…

A: Assets is any resource owned by the entity which is used for the purpose of generating revenue for…

Q: Peter Works in a Month for 22 Days. Wage rate per hour is $ 15 Every day Peter works for 8 Hours.

A: Introduction: Salary: Salary is the revenue to the employees. Worked by spending the time for that…

Q: Question Content Area Marketing Expense Budget Timothy Donaghy has developed a unique formula for…

A: Budgets are the forecasts or estimates that are made for future period. With the help of standards…

Q: A company pays 40.000,00€ to replace an important component of a factory machine. The replaced…

A: The cash outlay required to replace an outdated item at the current market price is known as…

Q: 1) Balance per bank statement $9,915 2) Balance per cash general ledger account (books) $ 8,954 3)…

A: GIVEN 1) Balance per bank statement $ 9,915 2) Balance per cash general ledger account (books) $…

Q: Apart from the basic costs to build up a unit rate, explain FIVE other factors you will consider in…

A: Usually, the price is estimated by the estimators in context of building a firm. The basic cost that…

Q: 36. If there were no intercompany transactions between the parent and its partially-owned…

A: A partially owned subsidiary company is a company in which another company holds less than 100% of…

Q: sOn the basis of the following information, calculate the net profit for the period and the value of…

A: Using absorption costing fixed costs remains deferred in ending inventory or releases from the…

Q: What is the maximum term of the measurement period?

A: Given If the initial accounting for a business combination is incomplete by the end of the reporting…

Q: Assume the following production data taken from the records of CONEY Manufacturing Co:…

A: Solution: Equivalent units under FIFO method = Units in beginning WIP * % completed during the…

Q: Over the course of a customer’s lifetime of reading a weekly magazine priced at $4 per issue, what…

A: It is given that the retention rate is 77% Therefore retention in $ $4 * 77% = $3.08 The discount is…

Q: REQUIRED: 1) How much is the DST from the mortgage?

A: DST on Mortgage: Section 195 of the Tax Code provides Stamp Tax on Mortgages, Pledges, and Deeds of…

Q: What is cost-efficiency according to: 1. Profit Projection 2. Cost estimates

A: profit maximization is considered primary objective of the management. this objective of management…

Q: Compute the balance of liability for compensated absences at December 31, 2021.

A: The computation of balance of liability for compensated absences as at December 31, 2021 is shown…

Q: Assume an hypothetical consumer faced by the following utility function; U=X^2Y ( squared times y).…

A: Utility function : U = X2Y Px = 4.2 , Px' = 4.8 Py = 4 , Py' = 5 We find the utility level at…

Q: 61 If the home office ships merchandise to the branch at an amount above the cost, at what amount…

A: A BRANCH IS A UNIT OF BUSINESS ENTERPRISE LOCATED SOME DISTANCE FROM HOME OFFICE . A BRANCH…

Q: Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: Raw and In Process account as of the end

A: Raw in a process is a term that is used to describe the goods partially completed and turned from…

Concept explainers

Balance of Payments

BOP is categorized into the following three components:

Question

Sir please help me sir urgently

Accounting
36. The following data relate to direct labor costs
for the current period:
Standard costs 7,200 hours at $11.60
Actual costs
6,000 hours at $10.10
The direct labor time variance is
a.$13,920 unfavorable
b.$12,120 favorable
c.$12,120 unfavorable
d.$13,920 favorable

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Ellis Companys labor information for September is as follows: A. Compute the standard direct labor rate per hour. B. Compute the direct labor time variance. C. Compute the standard direct labor rate if the direct labor rate variance was $2,712.30 (unfavorable).
Direct materials and direct labor variance analysis Faucet Industries Inc. manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Faucet Industries has 60 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Instructions Determine (a) the standard cost per unit for direct materials and direct labor; (h) the price variance, quantity variance, and total direct materials cost variance; and (c) the rate variance, time variance, and total direct labor cost variance.
Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured 115,000 units. The standard cost sheet indicates that the standard direct labor cost per unit is $1.50. The performance report for the period includes an unfavorable direct labor rate variance of $3,700 and a favorable direct labor time variance of $10,275. What was the total actual cost of direct labor incurred during the period?
Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Unadjusted Cost of Goods Sold equals 1,500,000, unadjusted Work in Process equals 236,000, and unadjusted Finished Goods equals 180,000. Required: 1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to Cost of Goods Sold. What is the adjusted balance in Cost of Goods Sold after closing out the variances? 2. What if any ending balance in a variance account that exceeds 10,000 is considered material? Close the immaterial variance accounts to Cost of Goods Sold and prorate the material variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is 1,050,000, the prime cost in Work in Process is 165,200, and the prime cost in Finished Goods is 126,000. What are the adjusted balances in Work in Process, Finished Goods, and Cost of Goods Sold after closing out all variances? (Round ratios to four significant digits. Round journal entries to the nearest dollar.)
At the end of the period, the factory overhead account has a credit balance of 10,000. (a) Is the total factory cost variance favorable or unfavorable? (b) Are the controllable and volume variances favorable or unfavorable?
Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is expected to amount to 20,000. The standard cost for a unit of the companys product estimates the variable overhead as follows: The actual data for the period follow: Using the four-variance method, calculate the overhead variances. (Hint: First compute the budgeted fixed overhead rate.)
Calculating amount of factory overhead applied to work in process The overhead application rate for a company is 2.50 per unit, made up of 1.00 for fixed overhead and 1.50 for variable overhead. Normal capacity is 10,000 units. In one month, there was an unfavorable flexible budget variance of 200. Actual overhead for the month was 27,000. What was the amount of the budgeted overhead for the actual level of production?
Direct materials and direct labor, variance analysis; factory overhead cost variance analysis Route 66 Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 10.000 tires were as follows: Instructions Determine (a) the price variance, quantity variance, and total direct materials cost variance; (b) the rale variance, time variance, and total direct labor cost variance; and (c) Appendix: variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance.
Refer to Cornerstone Exercise 9.1. Guillermos Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 980 Actual number of direct labor hours worked: 386 hours Actual rate paid per direct labor hour: 14.50 Standard rate per direct labor hour: 14.00 Required: 1. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June using the formula approach. 2. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June using the graphical approach. 3. Calculate the total direct labor variance for oil changes for June. 4. What if the actual wage rate paid in June was 12.40? What impact would that have had on the direct labor rate variance (LRV)? On the direct labor efficiency variance (LEV)?
Standard cost summary; materials and labor cost variances Perkins Processors Inc. produces an average of 10,000 units each month. The factory standards are 20,000 hours of direct labor and 10,000 pounds of materials for this volume. The standard cost of direct labor is 9.00 per hour, and the standard cost of materials is 4.00 per pound. The standard factory overhead at this level of production is 20,000. During the current month the production and cost reports reflected the following information: On the basis of this information: 1. Prepare a standard cost summary. 2. Calculate the materials (use the materials purchase price variance) and labor cost variances, and indicate whether they are favorable or unfavorable, using the formulas on pages 421422 and 424.
Using variance analysis and interpretation Last year, Wrigley Corp. adopted a standard cost system. Labor standards were set on the basis of time studies and prevailing wage rates. Materials standards were determined from materials specifications and the prices then in effect. On June 30, the end of the current fiscal year, a partial trial balance revealed the following: Standards set at the beginning of the year have remained unchanged. All inventories are priced at standard cost. What conclusions can be drawn from each of the four variances shown in Wrigleys trial balance?
ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5.000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance?