In producing product ZZ 14,800 direct labor hours were used at a rate of $8.20 per hour. The standard was 15,000 hours at $ 8.00 per hour. Based on these data the direct labor is a) Total variance is $1,380 unfavorable b) Efficiency variance is $3,000 favorable c) Total variance is $2,960 unfavorable d) Rate variance is $1,600 favorable

In producing product ZZ 14,800 direct labor hours were used at a rate of $8.20 per hour. The standard was 15,000 hours at $ 8.00 per hour. Based on these data the direct labor is a) Total variance is $1,380 unfavorable b) Efficiency variance is $3,000 favorable c) Total variance is $2,960 unfavorable d) Rate variance is $1,600 favorable

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 8EB: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450...

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Direct materials variances Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is 3.75 per pound. If 15,000 units used 36,000 pounds, which were purchased at 4.00 per pound, what is the direct materials (A) price variance, (B) quantity variance, and (C) cost variance?
The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month. Standard fixed costs are 6,000, and variable costs are 12,000. Data for two months follow: For each month, make a single journal entry to charge overhead to Work in Process, to close Factory Overhead, and to record variances. Indicate the types of variances and state whether each is favorable or unfavorable. (Hint: You must first compute the flexible-budget and production-volume variances.)
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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.
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