Asked Nov 21, 2019

Adams Company’s standard labor cost of producing one unit of Product DD is 4.00 hours at the rate of $12.00 per hour. During August, 40,600 hours of labor are incurred at a cost of $12.15 per hour to produce 10,000 units of Product DD.

a) What is the total labor variance?

b) What is the labor price and quantity variances?

c) What is the labor price and quantity variances, assuming the standard is 4.10 hours of direct labor at $12.25 per hour?


Expert Answer

Step 1

(a) Compute direct labor variance.


Image Transcriptionclose

(Actual HoursxActual Rate)- |(Standard Hours Standard Rate ) (40,600x $12.15) (40,000x$12.00) Total labor variance $493,290-$480,000 -$13,290 Unfavorable

Step 2

(b) Compute labor price variance and labor...


Image Transcriptionclose

Labor price variance [(Actual HoursxActual Rate) -- (Actual HoursxStandard Rate) (40,600x$12.15) (40,600x $12.00) Labor price variance= $493,290-$487,200 -$6,090 Unfavorable Labor quantity variance Labor Quantity Variance=Actual Hours Standard Rate) - (Standard Hours Standard Rate) - (40,600 x$12.00) - (40,000x $12.00) = $487,200-$480,000 $7,200 Unfavorable


Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in



Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: At the beginning of June, Bezco Toy Company budgeted 21,000 toy action figures to be manufactured in...

A: Variance analysis is an analysis used to recognize the difference between actual behavior and planne...


Q: I asked this question just now and received the incorrect answer. Trying again...     .   On Janu...

A: Click to see the answer


Q: Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the collection...

A: Journal entries is recording of the transaction in the accounting journal in a chronological order. ...


Q: Blossom Co. incurred research and development costs in 2021 as follows: Materials used in resear...

A: Research and development costs refers to the expenditures spent on research, development, improvemen...


Q: Salespersons' Report and Analysis Pachec Inc. employs seven salespersons to sell and distribute its ...

A: Here, the contribution margin is obtained by the addition of variable COGS and the variable selling ...


Q: Desayuno Products, Inc., produces cornflakes and branflakes. The manufacturing process is highly mec...

A: (1) 


Q: In its 2014 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $8,11...

A: Determine average total assets.


Q: -/1 Question 1 rences View Policies borations Current Attempt in Progress PLUS Support Jackson Manuf...

A: The correct answer is $11.50.


Q: Explain the step by step instructions given the following data for the items 1, 2, 3, 4 and 5 below....

A: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the que...