What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? (d) Perform the journal entries related to the variances.
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A: Variance analysis is very important technique of cost accounting in which budegetd or standard costs…
Q: Bellingham Company produces a product that requires 10 standard pounds per unit. The standard price…
A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…
Q: Ruby Company produces a chair that requires 6 yards of material per unit. The standard price of one…
A: Introduction: Variance analysis is a quantitative examination of the difference between actual and…
Q: Acoma, Inc., has determined a standard direct materials cost per unit of $6.80 (2 feet × $3.40 per…
A:
Q: For the current period, Juan Company’s standard cost of direct materials is $140,000. The direct…
A: Actual cost of direct material means the cost which has been actually incurred on the direct…
Q: Brookman, Inc. manufactures lead crystal glasses. The standard direct labor time is 0.5 hour per…
A: Standard hours means standard hours for actual output = 6800×0.5 =3400 hours
Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…
A: SOLUTION- GIVEN, VARIABLE OVERHEAD RATE = $2 FIXED OVERHEAD RATE = $10 NORMAL LEVEL OF PRODUCTION =…
Q: You have been given the following information about the production of Cynthia Co., and are asked to…
A: Labour Variance analysis is one of the important technique of management accounting, which shows…
Q: Shaw Company produced 730 units, Its overhead allocation base is DLH and its standard amount per…
A: A volume variance can be defined as the difference between the total actual overhead costs and the…
Q: Dvorak Company produced 1,000 units of product that required 3 standard hours per unit. The standard…
A: Factory overhead volume variances:Factory overhead volume variances refers to the difference between…
Q: o Yealink Company produces a product that requires 5.0 standard pounds per unit. The standard price…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: For the current period, Juan Company's standard cost of direct materials is $170,000. The direct…
A: A variance is a difference between a planned amount and the actual amount incurred. Variance can be…
Q: Ipad Man Inc. has provided the following standard direct labor cost for its product: Standard…
A: Standard rate of labor = P15 per direct labor hour Actual rate of labor = P36,000 / 1800 = P20 per…
Q: Standish Company manufactures consumer products and provided the following information for the month…
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…
Q: Bellingham Company produces a product that requires 10 standard direct labor hours per unit at a…
A: Direct labor rate variance = (Actual rate - Standard rate) x Actual hours Direct labor time variance…
Q: o Yealink Company produces a product that requires 5.0 standard pounds per unit. The standard price…
A: MPV = (SR - AR)AQ Where SR = Standard rate = $7.5 per pound AR = actual rate = $8 per pound AQ =…
Q: Fogel Co. expects to produce 103,000 units for the year. The company’s flexible budget for 103,000…
A: Variance is calculated by measuring the difference between the actual results and the flexible…
Q: Encinas Company produces a product that requires 6 standard pounds per unit. The standard price is…
A: Direct material price variance (Standard Price*Actual Quantity) - (Actual Price*Actual Quantity)…
Q: The standard and actual cost data of RIZWAN LTD. are as follows: Standard Actual 68,600units @ Rs.…
A: Variance Analysis is the method of controlling the cost in order to make appropriate decision by…
Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…
A: In budgeting as well as management accounting, variance analysis seems to be the examination of…
Q: Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a…
A: Variance analysis is the analysis between standard and actual results to mainly find out the reason…
Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Shaw Company produced 860 units. Its overhead allocation base is DLH and its standard amount per…
A: Volume variance is the formula used in comparing the actual overheads with the standard set by the…
Q: Venneman Company produces a product that requires 4 standard hours per unit at a standard hourly…
A: Labor Rate Variance = (Standard Rate - Actual Rate) * Actual Hours Labor Efficiency Variance =…
Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…
A: Variance analysis is an examination used to perceive the distinction between real conduct and…
Q: Venneman Company produces a product that requires 2 standard hours per unit at a standard hourly…
A: Solution a: Direct labor rate variance = (SR - AR) * AH = ($15 - $14.70)* 8900 =$2,670 F
Q: Can you show me how this is done? How do I know if it is favorable or unfavorable? The standard…
A: Direct materials quantity variance arises when there is a difference between the actual quantity…
Q: A manager prepared the following table by which to analyze labor costs for the month: Actual hours…
A: Total labor variance = Standard hours at Standard rate - Actual hours at Actual rate Actual hours at…
Q: Starts Inc. produces a product that require 3.50 standard hours per unit at a standard hourly rate…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Paradise Corp. has determined a standard labor cost per unit of $14 (0.50 hour × $28 per hour). Last…
A: Direct labour costs is cost of labour directly used for production and manufacturing activity.…
Q: Juan Company’s output for the current period was assigned a $150,000 standard direct materials cost.…
A: Given is: Juan Company’s output for the current period was assigned a $150,000 standard direct…
Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…
A: Lets start with understanding of various variances asked in the question, Material price variance:-…
Q: Standard and actual costs for direct labor for the manufacture of 1,500 units of product were as…
A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…
Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…
A: Following are the requisite Variances
Q: LOFAT Co. uses the two-way variance analysis for overhead performance. The budgeted factory overhead…
A: Factory Overhead Applied: One kind of direct overhead expenditure is called an applied overhead, and…
Q: eger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…
A: Overhead Volume Variance: The overhead volume variance indicates the cost of capacity available…
Q: Starts Inc. produces a product for which the standard specifies 8 yards of material per unit. The…
A: Standard costing: Under this costing method, the expected costs are used in the accounting records…
Q: A manufactured product has the following information for June. Standard Quantity and Cost…
A: The variance is the difference between the actual data and standard output of the production.…
Q: Adams Company’s standard labor cost of producing one unit of Product DD is 4.00 hours at the rate of…
A: (a) Compute direct labor variance.
Q: Rose Ltd is a manufacturing company that uses standard costing and variance analysis to control its…
A: Standard costing means where the standard is set for various types of cost and then devitaion is…
Q: Standish Company manufactures consumer products and provided the following informationfor the month…
A: Answer 1) Calculation of Total Variable Overhead Variance Total Variable overhead variance =…
Q: For FISH Company, actual materials cost was $24,800. Standard price for materials was $5.00 per…
A: Given that, actual material cost =$24800 the standard price of materials = $5 per pound (SP) the…
Q: Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a…
A: Variance in direct labour costs means difference in standard labour costs and actual labour costs.
Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…
A: Given, Variable Overhead Rate = $2 Fixed Overhead Rate = $10 Normal level of production = 1,200…
Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…
A: Variance analysis is a method of cost accounting used to find the variance between the actual and…
Q: Starts Inc. produces a product for which the standard specifies 4 yards of material per unit. The…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: What is the direct labor rate variance? What is the direct labor time variance?
A: Variance analysis is the analysis of actual and budgeted figures of production and related…
Q: Sunshine Company has the following direct labor standard for its Sunny Sunglasses. 1.2 standard…
A: Standard data: Hour = SH 1.2 * 2000 = 2400 hours Rate = SR = $10 per hour Cost = SC = 10 * 2400 =…
Q: The following information is available for a manufacturer. Compute the direct labor rate and…
A: Direct Labour rate variance = (Standard labour rate - Actual rate variance) * Actual labour hours…
Starts Inc. produces a product that require 8.00 standard hours per unit at a standard hourly rate of $32.00 per hour. Production of 2,500 units required 18,000 hours at an hourly rate of $35.00 per hour.
What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? (d) Perform the
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- 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.)At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.In all of the exercises involving variances, use F and U to designate favorable and unfavorable variances, respectively. E8-1 through E8-5 use the following data: The standard operating capacity of Tecate Manufacturing Co. is 1,000 units. A detailed study of the manufacturing data relating to the standard production cost of one product revealed the following: 1. Two pounds of materials are needed to produce one unit. 2. Standard unit cost of materials is 8 per pound. 3. It takes one hour of labor to produce one unit. 4. Standard labor rate is 10 per hour. 5. Standard overhead (all variable) for this volume is 4,000. Each case in E8-1 through E8-5 requires the following: a. Set up a standard cost summary showing the standard unit cost. b. Analyze the variances for materials and labor. c. Make journal entries to record the transfer to Work in Process of: 1. Materials costs 2. Labor costs 3. Overhead costs (When making these entries, include the variances.) d. Prepare the journal entry to record the transfer of costs to the finished goods account. Standard unit cost; variance analysis; journal entries 1,000 units were started and finished. Case 1: All prices and quantities for the cost elements are standard, except for materials cost, which is 8.50 per pound. Case 2: All prices and quantities for the cost elements are standard, except that 1,900 lb of materials were used.
- Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?A manufacturer planned to use $45 of variable overhead per unit produced, but in the most recent period, it actually used $47 of variable overhead per unit produced. During this same period, the company planned to produce 200 units but actually produced 220 units. What is the variable overhead spending variance?Fargo Co. manufactures products in batches of 100 units per batch. The company uses a standard cost system and prepares budgets that call for 500 of these batches per period. Budgeted fixed overhead is $60,000 per period. The standard costs per batch follow: During the period, 503 batches were manufactured, and the following costs were incurred: Required: Calculate the variances for materials, labor, and overhead. For overhead, use the two-variance method. (Hint: Please use the information given about the budgeted fixed overhead to compute the variable overhead rate.)
- Carlo Lee Corp. has established the following standard cost per unit: Although 10,000 units were budgeted, only 8,800 units were produced. The purchasing department bought 55,000 lb of materials at a cost of $123,750. Actual pounds of materials used were 54,305. Direct labor cost was $186,550 for 18,200 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted, 12,000 units were produced. The Purchasing department bought 50,000 lb of materials at a cost of $237,500. Actual pounds of materials used were 46,000. Direct labor cost was $287,500 for 25,000 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.The management of Golding Company has determined that the cost to investigate a variance produced by its standard cost system ranges from 2,000 to 3,000. If a problem is discovered, the average benefit from taking corrective action usually outweighs the cost of investigation. Past experience from the investigation of variances has revealed that corrective action is rarely needed for deviations within 8% of the standard cost. Golding produces a single product, which has the following standards for materials and labor: Actual production for the past 3 months follows, with the associated actual usage and costs for materials and labor. There were no beginning or ending raw materials inventories. Required: 1. What upper and lower control limits would you use for materials variances? For labor variances? 2. Compute the materials and labor variances for April, May, and June. Identify those that would require investigation by comparing each variance to the amount of the limit computed in Requirement 1. Compute the actual percentage deviation from standard. Round all unit costs to four decimal places. Round variances to the nearest dollar. Round variance rates to three decimal places so that percentages will show to one decimal place. 3. CONCEPTUAL CONNECTION Let the horizontal axis be time and the vertical axis be variances measured as a percentage deviation from standard. Draw horizontal lines that identify upper and lower control limits. Plot the labor and material variances for April, May, and June. Prepare a separate graph for each type of variance. Explain how you would use these graphs (called control charts) to assist your analysis of variances.
- Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is expected to amount to 20,000. The standard cost for a unit of the companys product estimates the variable overhead as follows: The actual data for the period follow: Using the four-variance method, calculate the overhead variances. (Hint: First compute the budgeted fixed overhead rate.)Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. At the beginning of the month, Edve Co. bought 25,000 feet of rubber for $6.875. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? B. If they bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? C. If there was an unfavorable direct materials price variance of $125, how much did they pay per toot for the rubber?The standard specifications for an electric motor manufactured by XYZ Electric Co. follow: Factory overhead rates are based on a normal 70% capacity and use the following flexible budget: The actual production was 2,500 motors, and factory overhead costs totaled $29,750. Required: Calculate the factory overhead variances using the two-variance method and the diagram format.
