Mordica Company's standard labor cost per unit of output is $33.00 (3.00 hours x $11.00 per hour). During August, the company incurs 3,300 hours of direct labor at an hourly cost of $12.10 per hour in making 1,000 units of finished product. Compute the total, price, and quantity labor variances. (Round answers to 2 decimal places, e.g. 52.75.) Total labor variance Labor price variance 2$ Labor quantity variance >

Q: Ellis Company’s labor information for September is as follows: Direct labor hourly rate paid $31.00…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: In September, Bubbles Company produced 1,000 units of product. 2,080 units of raw materials were…

A: This numerical has covered the concept of Variance Analysis.

Q: he following information summarizes the standard cost for producing one metal tennis racket frame at…

A: MPV = (Standard Price – Actual Price) x Actual Quantity

Q: Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During…

A: 1. October: Actual Cost           Standard Cost AH x AR   AH x SR   SH x SR 11500 x 15.7…

Q: Unit VIII question 7

A: The variance is the difference between the standard production dat and actual production costs…

Q: The standard cost of Product DD is 4 hours of labor at a rate of $12.00 per hour. During the month…

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

Q: The data below relate to the standards for the sole product of Marshal Corporati August: Standard…

A: The difference between a standard and an actual value is called variance and can be favorable or…

Q: Courington Detailing's cost formula for its materials and supplies is $2,010 per month plus $6 per…

A: Standard materials and supplies  cost = $2,010 per month + (Actual no. of vehicle x $6 per vehicle)…

Q: A has a normal capacity of 120 machines, working 8 hrs per day of 25 days in a month. company The…

A: Standard costing is used to compare the actual results with the budgeted figures and to take better…

Q: Kendra Company's standard labor cost of producing one unit of Product DD is 4 hours at the rate of…

A: Total labor variance = Actual labor cost - Standard labor cost

Q: Sterling Company's standard labor cost per unit of output is $20.00 (2 hours x $10.00 per hour).…

A: Working Notes: 1. Standard labor cost = Actual output * Standard labor cost per unit of output =…

Q: The following information is provided The per-unit standards are 2 pounds at $5 per pound. Last…

A: Solution-a Material Price Variance = (Actual Cost) - (Standard rate per pound * Actual Quantity)…

Q: The per-unit standards for direct labor are 2 direct labor hours at P15 per hour. If in producing…

A: Formula: Total direct labor variance = Standard cost - Actual cost

Q: The Russell Company provides the following standard cost data per unit of product: Direct material…

A: Lets understand basics, Direct labor usage variance is a variance between the standard labor hour…

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Labor rate variance = (standard rate - actual rate) * actual hours   -1400 = (standard rate -…

Q: If the materials price variance was $3,542 unfavorable, what was the standard materials price per…

A: The calculation of material standard price per pound is shown hereunder : Material price variance $…

Q: Ellis Company's labor information for September is as follows: Direct labor hourly rate paid $31.00…

A: Variance: It is the difference between the actual cost and  the standard cost. Direct Labour Rate…

Q: Jaw Titan Company established a standard direct material cost of Php30 per finished unit for its…

A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: A company has a normal capacity of 120 machines, working 8 hrs per day of 25 days in a month. The…

A: Variance:- It occurs when there is a difference between actual performance and Standard Performance.…

Q: The standard cost of labor for the David Company's product is 2 hours of labor for each unit of…

A: Labor rate variance is computed by multiplying the actual quantity with the difference of standard…

Q: In September, AA Company produced 1,000 units of product. 2,080 units of raw materials were used at…

A: Standard hours allowed = Actual units x standard hour per unit =1000 x 1/2 hour = 500 hour Actual…

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: At the beginning of the year, Craig Company had the following standard cost sheet for one of its…

A: Solution:- 1)Calculation of  labor rate variance as follows under:-  Labor rate variance = (…

Q: Nisqually Corporation has established the following labor standards for a particular product:…

A: Variance is considered as a change between the expected value and actual results. It may be labor…

Q: During June HASF company material purchases amounted to 5,000 pounds at a price of 7 per pound.…

A: Computation of material variance is as follows:

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: Polaco Corporation makes a product that has the following direct labor standards: hours per 0.4 unit…

A: To calculate: Labor rate variance   Standard DLH rate = $24.00 per hour Actual DLH rate = $22.10 per…

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: Williams Corporation reports the following direct labor information for November: Standard rate $…

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

Q: The following information pertains to Boomerang Company's direct labor for March: Standard direct…

A: Formula: Labor rate variance = ( Actual hours x actual rate ) - ( Actual hours x standard rate )…

Q: The Russell Company provides the following standard cost data per unit of product: Direct material…

A: Lets understand the basics. Direct labor usage variance is a variance between the standard labor…

Q: The standard direct labor cost for producing one unit of product is 4 direct labor hours at a…

A: Direct labor quantity variance shows the difference of hours actually worked than planned for the…

Q: In September, Bubbles Company produced 1,000 units of product. 2,080 units of raw materials were…

A: Direct labor rate variance is the difference between the standard rate and actual rate for actual…

Q: At Laramie, the standard quantity of labor is 26 hours per refrigeration unit. The standard wage…

A: Labor Rate Variance: Calculating the difference between real hours multiplied by the actual rate and…

Q: Purvis Manufacturing, which produces a single product, has prepared the following standard cost…

A: The variance is the difference between standard data of production and actual costs incurred for…

Q: standard direct labour cost of Product Z is as follows: Four hours of grade B labour at £3 per hour…

A: The direct labor (DL) variance is that the difference between the total actual direct labor cost and…

Q: The following information summarizes the standard cost for producing one metal tennis racket frame…

A: The question is based on the concept of Cost Accounting. When compared to the industry or setting…

Q: The standard cost for the David Company's product is 5 pounds of materials for each unit of product…

A: Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: he data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: A standard costing system is a tool used in accounting to create budgets, manage and control…

Q: The following information is for Delay Company’s July production: Standards: Material: 3.0 feet per…

A: Variances are computed to find out the deviations, if any and taking corrective measures for them.

Q: At the beginning of 2021, ABC Manufacturing Ltd., adopted the following standards for its direct…

A: Standard hours are given for 1 unit of output. But actual output was 2,600 units.  So, standard…

Q: The following labor standards have been established for a particular product: Standard labor-hours…

A: Standard labor hours for 900 units = 900 units x 8.7 hours = 7,830 hours

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 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: Javon Company set standards of 2 hours of direct labor per unit at a rate of $16.30 per hour. During…

A: Every business entities set the standard in advance and the actual performance is measured keeping…

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.