Complete the following table, showing the direct labor variance relationships for August for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable variance, and a positive number for an unfavorable variance.

Q: Kilo's standard price per pound of direct materials (SP) is:

A: A standard costing system is a technique used in accounting to prepare budgets, monitor and control…

Q: In September, Ethan Company reports 18,600 actual direct labor hours, and it incurs $126,540 of…

A: Standard manufacturing overhead costs = Standard hours x Predetermined overhead rate = 22200 hours x…

Q: The details regarding composition and the weekly wage rate of labour force engaged on a job…

A: Answer) Calculation of Labor Cost Variance for Semi-skilled Labor Labor Cost Variance = Standard…

Q: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450…

A: The direct labor cost variance represents the difference between the actual labor cost incurred by…

Q: Ferro Enterprises, Inc., uses a standard cost system in which it applies manufacturing overhead to…

A: Given: Applied overhead cost = P52,000

Q: The following information relates to the direct labor at Padmaja Manufacturing, Inc. for March:…

A: Actual hours = 2300 units x 1.50 Actual hours = 3450 hours   Standard hours = 2300 units x 1.40…

Q: True or False. If the budgeted factory overhead cost is $460,000, the budgeted direct labor hours is…

A: Factory overhead rate per hour = Budgeted factory overhead cost/Budgeted direct labor hour

Q: Sierra Water Corporation uses a standard cost system for the production of its transistors. The…

A: Labor Efficiency Variance = (Standard labor hours allowed for actual output - Actual labor hours…

Q: Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of…

A: The direct labor relationship for August for Sole Purpose Shoe Company is as follows:

Q: Peters operated at 80% of capacity during the year but applied factory overhead based on the 90%…

A: Overhead amount of cost is the cost which is incurred by the company in order to make the product…

Q: Madrid Co. has a direct labor standard of 4 hours per unit of output. Each employee has a standard…

A: Identify the correct option. Working note: Calculate the actual direct labor rate per hour.

Q: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450…

A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked = ($15.75…

Q: Matinna Co. maintains no inventories and has the following data pertaining to one of its direct…

A: DIRECT MATERIAL PRICE VARIANCE IS THE DIFFERENCE BETWEEN THE ACTUAL AMOUNT SPENT ON DIRECT MATERIAL…

Q: Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the…

A: Material purchase price variance means when there is a difference between actual cost of material…

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $30,800 per month plus $62 per…

A: The activity variance for manufacturing overhead is calculated as difference between flexible budget…

Q: Bade Midwifery's cost formula for its wages and salaries is $1,230 per month plus $240 per birth.…

A: Variance analysis is an integral part of budgetary control that compares the actual performance of…

Q: The standard rate of pay is $14 per direct labour hour. If the actual direct labour payroll was…

A: DIRECT LABOUR PRICE (RATE) VARIANCE :  (STANDARD RATE X ACTUAL HOURS) - (ACTUAL RATE X ACTUAL HOURS)…

Q: Yohan Company has the following balances in its direct materials and direct labor variance accounts…

A: Adjusted cost of goods sold  = unadjusted cost of goods sold +/- Adjustment due to closing of…

Q: Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,640 per month plus $47…

A: An activity variance would seem to be the gap between a revenue or expenditure unit within a…

Q: Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.6 units of…

A: Material price variance = (Standard price per unit of input - actual price per unit of input)*actual…

Q: Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.60 units of…

A: Variances are the variations between the estimates so made for the outlays and the actual outlays.

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $32,400 per month plus $54 per…

A: Formulas; Budgeted Manufacturing Overhead = Manufacturing overhead + (Rate per Machine hours x…

Q: Bade Midwifery's cost formula for its wages and salaries is $1,280 per month plus $250 per birth.…

A: The difference between planning and flexible budget is known as activity variance.

Q: During August, 2021, a company produced 1,000 units of a product using 3,600 pounds of direct…

A: Answer) Calculation of Material Quantity variance Material Quantity variance = (Standard quantity of…

Q: Dreary Credit Agency uses a standard cost system for the processing of its credit applications. The…

A: Calculation of Labor Efficiency Variance:  Standard rate =$15 Actual Hours = 1,920 hours Standard…

Q: The following information is available for Anuounyam Manufacturing Company for June when the company…

A: Direct Labor Rate Variance: The direct labor rate variance is a measure to determine the variation…

Q: The standard cost card for a product indicates that one unit of the product requires 8 kilograms of…

A: Material quantity variance is the variance between the standard material estimated and the actual…

Q: What is the total variable overhead variance for March for Harry?

A: Given information is: Harry Company's standard variable overhead rate is $6.00 per direct labor…

Q: A popular product of Loring Glassworks is a hand-decorated vase. The company's standard cost system…

A: Labor rate variance = (standard rate per hour- actual rate per hour)*actual hours Labor efficiency…

Q: Camden Company reported a favorable direct labor rate variance of $1,443 and an unfavorable direct…

A: Standard data is calculated by considering budgeted data and using actual data. Variance…

Q: Normal annual capacity for ABC Company is 72,000 units, with fixed factory overhead budgeted at P…

A: The ideal capacity variance refers to the amount by which the actual production usage declines below…

Q: Whitman has a direct labor standard of 2 hours per unit of output. Each employee has a standard wage…

A: Variances are calculated in order to compare the standard set by the company and the actual…

Q: Salem Screen Corporation manufactures and sells 50-inch television sets and uses standard costing.…

A: Absorption costing means a managerial accounting method of capturing all the costs that are…

Q: Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.8 hours of…

A: Following formulas were used to calculate labor variances.   Labor rate variance =Actual hours x…

Q: ubberly Corporation's cost formula for its manufacturing overhead is $31,300 per month plus $52 per…

A: The variance is the difference between the actual data and standard output of the production.

Q: Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct…

A: Manufacturing expenses are simply an expenditure study that estimates how each department in your…

Q: Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using…

A: Material Price Variance = ( Standard Price - Actual Price ) x Actual Quantity Material Quantity…

Q: A company manufactures t-shirts. In January, the budgeted direct labor hours are 3,600, and the…

A: Budgeted labor rate = $28,000 / 3,600 = $7,78 Actual labor rate = $28,754 / 3,512 = $8.19

Q: standard for each toothpick motor is 1.25 hours at a standard cost of $9.50 per hour. During the…

A: The labour efficiency variance is the difference between the actual number of direct labour hours…

Q: he details regarding composition and the weekly wage rate of labour force engaged on a job scheduled…

A: solution given number of actual week =32 weeks number of actual number of semi skilled workers =30…

Q: Your Company’s cost formula for its wages and salaries is $2,500 per month plus $475 per unit sold.…

A: Every company makes a budget in order to analyze the cost estimates and compares it with the actual.…

Q: Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.6 units of…

A: Direct material cot variance is the difference between standard cost of materials and actual cost…

Q: Chhom Corporation makes a product whose direct labor standards are 0.8 hours per unit and $31 per…

A: Labor efficiency variance occurs due to the difference between the actual hours used and the…

Q: Sharp Company manufactures a product for which the following standards have been set: Standard…

A: 1a. Material quantity variance = $2250 U(SQ - AQ) x SP = -$2250(2350 x 3 - AQ) x $5 = -$2250Actual…

Q: During March, the company purchased direct materials at a cost of $45,210, all of which were used in…

A: 1.a Compute actual cost per foot: Actual cost per foot = Actual cost / Actual quantity Actual cost…

Q: During June, Fraser Company's material purchases amounted to 5,100 pounds at a price of $8.25 per…

A: Variances are the differences between the standard and actual costs of direct material, direct labor…

Q: Whitman has a direct labor standard of 2 hours per unit of output. Each employee has a standard wage…

A: Identify the correct option. Working note: Calculate the standard labor hours.

Q: Javonte Co. set standards of 3 hours of direct labor per unit of product and $15 per hour for the…

A: Given the following information: Standard direct labor hour per unit: 3 hours Standard labor rate:…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.