The standard number of hours that should have been worked for the output attained is 6,000 direct labor hours and the actual number of direct labor hours worked was 6,300. If the direct labor price variance was $3,150 unfavorable, and the standard rate of pay was $9 per direct labor hour, what was the actual rate of pay for direct labor? Select one: a. $7.50 per direct labor hour b. $8.50 per direct labor hour c. $9.50 per direct labor hour d. $9.00 per direct labor hour e. $9.80 per direct labor hour

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: The following information is available from the Terry Company:   Actual total factory overhead…

A: Formula: Applied Fixed overhead = Standard rate x Standard hours.

Q: The following information describes a​ company's usage of direct labor in a recent​ period:   Actual…

A: direct labor efficiency variance  = standard rate ×[Actual hours used - Standard Hours for actual…

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

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

Q: The following information describes a company's usage of direct labor in a recent period. The direct…

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

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

A: The direct labor cost variance represents the difference between the actual labor cost incurred by…

Q: Lewis Company's standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of…

A: Total Labor Variance =  ( AH * AR - SR * SH )   Labor Price Variance =  ( SR - AR ) * AH…

Q: 00, Direct labor usage (efficiency) variance—unfavorable P4,200. What were the actual hours worked,…

A: Actual hours worked refers to all hours worked by the employee and excludes any paid or unpaid leave…

Q: Beverly Company has determined a standard variable overhead rate of $3.90 per direct labor hour and…

A: Standard hours=Actual units×Labor hour per unit=3400×0.50=1700

Q: Assume the following: • The standard price per pound is $2.00. • The standard quantity allowed per…

A: Material price variance is the difference of the standard price and the actual price paid for the…

Q: A company reports the following information for its direct labor. Actual hourn of direct labor used…

A: When actual hours/price is higher than standard then it is unfavorable and vice versa is favorable.

Q: The standard number of hours that should have been worked for the output attained is 9,000 direct…

A: The variance is the difference between the actual data and standard output of the production.…

Q: Japan Company produces furniture and has the following data related to its direct labor costs:…

A: Direct labor total cost variance= Standard labor Cost - Actual direct labor cost

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: Use the following data to find the direct labor rate variance if the company produced 3,500 units…

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

Q: The standard number of hours that should have been worked for the output attained is 6,000 direct…

A: Formula: Labor Rate Variance = (Standard Labor rate per hour – Actual Labor rate per hour) X Actual…

Q: The standard direct labour cost of product C is as follows: Three hours of skilled labour at £4 per…

A: Formula: Direct labour total variance = Actual cost - Standard cost

Q: A company had net income of $60,000 on their direct (variable) costing Income Statement for a given…

A: According to the Variable costing income statement, the net income =$60,000. In Variable costing the…

Q: The standard number of hours that should have been worked for the output attained is 10,000 direct…

A: Variance analysis is defined as the procedure followed by the management to study the deviations…

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: A company uses four hours of direct labor to produce a product unit. The standard direct labor cost…

A: Actual direct labor cost per hour = Total direct labor cost  / Total Actual hours = $1,599,040 /…

Q: The following information pertains to ABC Company's Direct Labor for March: Standard DL Hours -…

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

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

A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked = ($15.75…

Q: If a company assigns factory labor to production at a cost of $84,000 when standard cost is $80,000,…

A: Solution:- If a company assigns factory labor to production at a cost of $84,000 when standard cost…

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: The following information describes a company's direct labor usage in a recent period. 72,000 15…

A: Direct labor cost is the difference between actual direct and standard direct labor rates at a…

Q: Dreary Credit Agency uses a standard cost system for the processing of its credit applications. The…

A: Calculation of Labor Efficiency Variance:  Standard rate =$15 Actual Hours = 1,920 hours Standard…

Q: The following information is available for Anuounyam Manufacturing Company for June when the company…

A: Direct Labor Rate Variance: The direct labor rate variance is a measure to determine the variation…

Q: A company reports the following information for its direct labor. Actual hours of direct labor used…

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

Q: The following standards for variable manufacturing overhead have been established for a company that…

A: Answer Variable Overhead Spending variance =  $720.00 Favorable

Q: The per-unit standards for direct labor are 1.4 direct labor hours at $13 per hour. If in producing…

A: Variance is considered as the difference between budgeted value and actual results. The management…

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: The standard number of hours that should have been worked for the output attained is 10,000 direct…

A: Direct labor rate variance = Actual hours ×[Actual rate - standard rate]

Q: The following data relate to direct labor costs for the current period: Standard costs 6,900…

A: Formula:

Q: Greyson Company produced 8,300 units of product that required 4.25 standard hours per unit.…

A: Given: Units produced =8300 unitsstandard hours per unit =4.25100% of normal capacity=27000…

Q: The following information describes a company’s direct labor usage in a recent period.…

A: Labor rate variance = Actual hour × Actual rate - Actual hours × Standard Rate Labor Rate Variance =…

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 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: A company reports the following information for its direct labor.   Actual hours of direct labor…

A: The direct labor cost variance is a combination of two variances - the direct labor rate variance…

Q: A manufacturing company is expected to complete a task in 45 minutes.  During a recent accounting…

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

Q: The standard direct labour cost of product Zeta is as follows: Three hours of skilled labour at £4…

A: This question is taken from standard costing. In this question, we have been asked to calculate…

Q: The standard cost of one unit of product includes 3 hours of direct labor at €11.50 per hour.…

A: The variance is the difference between the actual data and standard output of the production.

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 was obtained from KMG Manufacturing Company.   Standard Data: Direct…

A: Formula: Direct labor rate variance = ( standard rate - Actual rate ) x Actual hours.

Q: Simon Corporation had a favorable direct-labor efficiency variance of P6,000 for the period just…

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

Q: The actual direct labor wage rate is $8.50 and 4,500 direct labor-hours were actuallyworked during…

A: Definition: Direct labor variances: The difference between the actual labor cost in the production…

Q: The standard direct labor cost per unit for a company was $21 (= $14 per hour × 1.5 hours per unit).…

A: Formula: Labor price variance = ( Standard rate - actual rate ) x Actual hours. Deduction of actual…

Q: The per-unit standards for direct labor are 1.5 direct labor hours at $15 per hour. If in producing…

A: Labour Price variance = ( Standard price- Actual Price ) Actual quantity of labour used =…

Q: Thompson Company uses a standard cost system for its single product. The following data are…

A: Please see the next step for the solution

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.