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Nana Inc. evaluates manufacturing overhead in its factory by using variance analysis. The following information applies to the month of May: Number of frames manufactured (Actual) (Budget) 19,000   20,000 Variable overhead costs  (Actual) (Budget) 4,100     2 per direct labor hour Fixed overhead costs (Actual) (Budget) 22,000    20,000 Direct labor hours (Actual) (Budget) 2,100     0.1 hours per frame Labor payroll (Actual) (Budget) 10,500   4.50 per direct labor hour What is the direct labor usage variance? a. 900 F b. 900 UF c. 450 F d. 450 UF What is the direct labor rate variance? a. 1050 debit b. 1050 credit c. 950 debit d. 950 credit

Nana Inc. evaluates manufacturing overhead in its factory by using variance analysis. The following information applies to the month of May: Number of frames manufactured (Actual) (Budget) 19,000   20,000 Variable overhead costs  (Actual) (Budget) 4,100     2 per direct labor hour Fixed overhead costs (Actual) (Budget) 22,000    20,000 Direct labor hours (Actual) (Budget) 2,100     0.1 hours per frame Labor payroll (Actual) (Budget) 10,500   4.50 per direct labor hour What is the direct labor usage variance? a. 900 F b. 900 UF c. 450 F d. 450 UF What is the direct labor rate variance? a. 1050 debit b. 1050 credit c. 950 debit d. 950 credit

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...
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Nana Inc. evaluates manufacturing overhead in its factory by using variance analysis. The following information applies to the month of May:

Number of frames manufactured
(Actual) (Budget)
19,000   20,000
Variable overhead costs 
(Actual) (Budget)
4,100     2 per direct labor hour

Fixed overhead costs
(Actual) (Budget)
22,000    20,000

Direct labor hours
(Actual) (Budget)
2,100     0.1 hours per frame

Labor payroll
(Actual) (Budget)
10,500   4.50 per direct labor hour

      • What is the direct labor usage variance?
        a. 900 F
        b. 900 UF
        c. 450 F
        d. 450 UF

      • What is the direct labor rate variance?
        a. 1050 debit
        b. 1050 credit
        c. 950 debit
        d. 950 credit
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