gue Corporation uses a standard cost system. The following information was provided for the period that just ended:Actual price per kilogram$3.00Actual kilograms of material used31,000Actual hourly labor rate$18.20Actual hours of production4,900 labor hoursStandard price per kilogram$2.80Standard kilograms per completed unit6 kilogramsStandard hourly labor rate$18.00Standard time per completed unit1 hr.Actual total factory overhead$34,900Actual fixed factory overhead$18,000Standard fixed factory overhead rate$1.20 per labor hourStandard variable factory overhead rate$3.80 per labor hourMaximum plant capacity15,000 hoursUnits completed during the period5,000The direct labor cost variance is _____.

Direct Labor cost Variance = SR * SH - AR * AH Where SR is the standard rate SH is the standard…

Answered: gue Corporation uses a standard cost…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 8EA: Queen Industries uses a standard costing system in the manufacturing of its single product. It...

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gue Corporation uses a standard cost system. The following information was provided for the period that just ended:

Actual price per kilogram	$3.00
Actual kilograms of material used	31,000
Actual hourly labor rate	$18.20
Actual hours of production	4,900 labor hours
Standard price per kilogram	$2.80
Standard kilograms per completed unit	6 kilograms
Standard hourly labor rate	$18.00
Standard time per completed unit	1 hr.
Actual total factory overhead	$34,900
Actual fixed factory overhead	$18,000
Standard fixed factory overhead rate	$1.20 per labor hour
Standard variable factory overhead rate	$3.80 per labor hour
Maximum plant capacity	15,000 hours
Units completed during the period	5,000

The direct labor cost variance is _____.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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