CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
6th Edition
ISBN: 9781264445356
Author: Noreen
Publisher: MCG
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Chapter 10A, Problem 10A.4E
To determine
Reason for company having favorable and unfavorable variances.
Introduction:
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The following data relate to direct labor costs for the current period:
Line Item Description
Value
Standard costs
7,000 hours at $11.80
Actual costs
6,300 hours at $10.80
The direct labor rate variance is
a. $14,560 unfavorable
b. $6,300 favorable
c. $14,560 favorable
d. $8,260 favorable
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its
variable manufacturing overhead standards on direct labor-hours.
Standard hours per unit of output
3.00 DLH3
Standard variable overhead rate
$10.75 per DLH
The following data pertain to operations for the last month:
Actual direct labor-hours
9,600 DLHS
Actual total variable manufacturing overhead cost
Actual output
$95,760
2,500 units
What is the variable overhead efficiency variance for the month?
Question 2
Answer the questions from the information provided.
INFORMATION
The following information was extracted from the accounting
records of Alpha Enterprises for the month ended 31 March
2022:
Sales
Selling price per unit
Finished products on 01 March 2022
Products manufactured during the month
Variable manufacturing costs per unit
Variable selling and administrative costs per unit sold
Fixed manufacturing costs
Fixed selling and administrative costs
3 200 units
R100
400 units
3 600 units
R26
R12
R25 200
R12 400
Chapter 10A Solutions
CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
Ch. 10A - Fixed Overhead Variances LO10—4 Primara...Ch. 10A - Prob. 10A.2ECh. 10A - Prob. 10A.3ECh. 10A - Prob. 10A.4ECh. 10A - Prob. 10A.5ECh. 10A - Prob. 10A.6ECh. 10A - Prob. 10A.7ECh. 10A - Applying Overhead; Overhead Variances LO10—3,...Ch. 10A - Prob. 10A.9PCh. 10A - Comprehensive Standard Cost Variances LO10—1,...
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