Compute for November: a. The direct labor efficiency variance. Is this variance favorable (F) or unfavorable (U)? b. The direct labor rate variance. Is this variance favorable (F) or unfavorable (U)? c. The actual number
Dash Company adopted a
| Material | (5 kilograms × $5.00 per kilogram) | $ | 25.00 | |
| Labor | (6 hours × $19.50 per hour) | 117.00 | ||
All materials are added at the beginning of processing. The following data were taken from the company’s records for November:
| In-process beginning inventory | None | ||
| In-process ending inventory | 800 | units, 70% complete as to direct labor | |
| Units completed | 6,400 | units | |
| Budgeted output | 6,800 | units | |
| Purchases of materials | 58,000 | kilograms | |
| Total actual direct labor costs | $ | 750,000 | |
| Actual direct labor hours | 41,000 | hours | |
| Materials usage variance | $ | 2,300 | Unfavorable |
| Total materials variance | $ | 850 | Unfavorable |
Required:
1. Compute for November:
a. The direct labor efficiency variance. Is this variance favorable (F) or unfavorable (U)?
b. The direct labor rate variance. Is this variance favorable (F) or unfavorable (U)?
c. The actual number of kilograms of material used in the production process during the month.
d. The actual price paid per kilogram of material during the month, the company calculates the direct materials price variance at point of purchase.
e. The amount of direct materials cost and direct labor cost transferred to the Finished Goods Inventory account.
f. The total amount of direct materials cost and direct labor cost in the Work-in-Process Inventory account at the end of the month.
2. Prepare
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