AAA Company uses the standard cost system. The following information on its direct labor costs areprovided.Standard direct labor hours75,00072,500P10,00014,500275,500Actual direct labur hoursDirect labor efficiency variance (favorable)Direct labor rate variance (favorable)Total payroll12. What is AAA Company's actual direct labor rate?PO.20b. РА.00с. Р3.60d. P3.80AAA Company uses a standard cost system. Information for raw materials for Product RB for themonth of October is as follows:Standard unit priceActual purchase price per unitActual quantity purchasedActual quantity usedStandard quantity allowed for actual productionP1.60P1.552,000 units1,900 units1,800 units13. What is the material purchase price variance?a. P90 favorable b. P90 unfavorablec. P100 favorabled. P100 unfavorableInformation on AAA Company's direct materials costs is as follows:20,000P40,000P2.10P3,000Actual units of direct materialsActual direct materials costStandard price per unit of direct materialsDirect material efficiency variance (favorable)14. AAA Company's direct material price variance wasa. P1,000 favorable b. P1,000 unfavorable c. P2,000 favorable d. P2,000 favorableHome Company manufactures tables with vinyl tops. The standard material cost for the vinyl used perType-R table is P7.80 based on six square feet of vinyl at a cost of P1.30 per square foot. A productionrun of 1,000 tables in January resulted in usage of 6,400 square feet of vinyi at a cost of P1.20 persquare foot, at a total cost of P7,680.15. The usage variance resulting from the above production run wasa. P120 favorableb. P480 unfavorablec. P520 unfavorable d. P640 favorableJustine Corporation uses a standard cost system. Direct labor information for product. Ten for themonth of June is as follows:Standard rateActual rate paidStandard hours allowed for actual productionLabor efficiency varianceP6.00 per hourP6.10 per hour1,500 hoursP600 unfavorable16. What are the actual hours worked?a. 1,400b. 1,402c. 1,598d. 1,600

Name: AAA Company uses the standard cost system. The following information
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Description: AAA Company uses the standard cost system. The following information on its direct labor costs areprovided.Standard direct labor hours75,00072,500P10,00014,500275,500Actual direct labur hoursDirect labor efficiency variance (favorable)Direct labor r

Direct labor states the salaries as well as wages which are paid to the workers who attribute…

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AAA Company uses the standard cost system. The following information on its direct labor c provided. 75,000 72,500 P10,000 14,500 275,500 Standard direct labor hours Actual direct labur huurs Direct labor efficiency variance (favorable) Direct labor rate variance (favorable) Total payroll 12. What is AAA Company's actual direct labor rate? P0.20 b. P4.00 с. Р3.60 d. P3.80

AAA Company uses the standard cost system. The following information on its direct labor c provided. 75,000 72,500 P10,000 14,500 275,500 Standard direct labor hours Actual direct labur huurs Direct labor efficiency variance (favorable) Direct labor rate variance (favorable) Total payroll 12. What is AAA Company's actual direct labor rate? P0.20 b. P4.00 с. Р3.60 d. P3.80

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.4P: Direct materials and direct labor variance analysis Faucet Industries Inc. manufactures faucets in a...

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Rath Company showed the following information for the year: Required: 1. Calculate the standard direct labor hours for actual production. 2. Calculate the applied variable overhead. 3. Calculate the total variable overhead variance.
Mulliner Company showed the following information for the year: Required: 1. Calculate the standard direct labor hours for actual production. 2. Calculate the applied variable overhead. 3. Calculate the total variable overhead variance.
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?
Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01
Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
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).
If variances are recorded in the accounts at the time the manufacturing costs are incurred, what does a debit balance in Direct Materials Price Variance represent?
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?
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.
(Appendix 10A) Which of the following is true concerning labor variances that are not material in amount? a. They are closed to Cost of Goods Sold. b. They are prorated among Work in Process, Finished Goods, and Cost of Goods Sold. c. They are prorated among Materials, Work in Process, Finished Goods, and Cost of Goods Sold. d. They are reported on the balance sheet at the end of the year. e. All of these.
Data on Gantry Company's direct labor costs are given below: Standard direct labor-hours Actual direct labor-hours Direct labor efficiency variance-favorable Direct labor rate variance-favorable Total direct labor payroll What was Gantry's standard direct labor rate? 40,000 39,000 $ 3,400 $ 7,800 $ 124,800 Multiple Cholce $3.20 $3.04 $3.40 $7.80