menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

MinnOil performs oil changes and other minor maintenance services on cars and trucks. The company advertises that all services are performed within 15 minutes each. On a recent Saturday, 160 cars were serviced, resulting in the following labor variances: rate, $19 unfavorable; efficiency (time), $14 favorable. If MinnOil’s standard labor rate is $7 per hour, determine the actual wage rate per hour and the actual hours worked.

BuyFindarrow_forward

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

Solutions

Chapter
Section
BuyFindarrow_forward

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
Chapter 23, Problem 1CMA
Textbook Problem
35 views

MinnOil performs oil changes and other minor maintenance services on cars and trucks. The company advertises that all services are performed within 15 minutes each. On a recent Saturday, 160 cars were serviced, resulting in the following labor variances: rate, $19 unfavorable; efficiency (time), $14 favorable. If MinnOil’s standard labor rate is $7 per hour, determine the actual wage rate per hour and the actual hours worked.

Chapter 23, Problem 1CMA, MinnOil performs oil changes and other minor maintenance services on cars and trucks. The company

To determine

Compute the actual wage rate per hour and the actual hours worked.

Explanation of Solution

Direct labor variances:

The difference between the actual labor cost in the production and the standard labor cost for actual production is known as direct labor cost variance. The direct labor variance can be classified as follows:

  • v Labor rate variance.
  • v Labor time variance.

Compute the actual hours worked:

Direct labor time variance}=[(Actual direct labor hoursStandard direct labor hours (2))×Standard rate per hour]$14=[(Actual direct labor hours40 hours)×$7 per hour]$14$7=(Actual direct labor hours40 hours)2=(Actual direct labor hours40 hours)

Actual direct labor hours40}=240=38 hours

Working note (1):

Compute the standard rate of cars serviced in 1 hour:

Standard units= Minutes in hours Standard hours per service =60 minutes15 minu

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 23 Solutions

Financial And Managerial Accounting
Show all chapter solutions
add
Ch. 23 - Direct materials variances Bellingham Company...Ch. 23 - Direct labor variances Bellingham Company produces...Ch. 23 - Factory overhead controllable variance Bellingham...Ch. 23 - Factory overhead volume variance Bellingham...Ch. 23 - Standard cost journal entries Bellingham Company...Ch. 23 - Income statement with variances Prepare an income...Ch. 23 - Crazy Delicious Inc. produces chocolate bars. The...Ch. 23 - Atlas Furniture Company manufactures designer home...Ch. 23 - Salisbury Bottle Company manufactures plastic...Ch. 23 - The following data relate to the direct materials...Ch. 23 - De Soto Inc. produces tablet computers. The...Ch. 23 - Standard direct materials cost per unit from...Ch. 23 - H.J. Heinz Company uses standards to control its...Ch. 23 - Direct labor variances The following data relate...Ch. 23 - Glacier Bicycle Company manufactures commuter...Ch. 23 - Ada Clothes Company produced 40,000 units during...Ch. 23 - Mexicali On the Go Inc. owns and operates food...Ch. 23 - Direct materials and direct labor variances At the...Ch. 23 - Flexible overhead budget Leno Manufacturing...Ch. 23 - Flexible overhead budget Wiki Wiki Company has...Ch. 23 - Factory overhead cost variances The following data...Ch. 23 - Thomas Textiles Corporation began November with a...Ch. 23 - The data related to Shunda Enterprises Inc.s...Ch. 23 - Factory overhead cost variance report Tannin...Ch. 23 - Recording standards in accounts Cioffi...Ch. 23 - Recording standards in accounts The Assembly...Ch. 23 - Income statement indicating standard cost...Ch. 23 - Rockport Industries Inc. gathered the following...Ch. 23 - Dickinsen Company gathered the following data for...Ch. 23 - Rosenberry Company computed the following revenue...Ch. 23 - Lowell Manufacturing Inc. has a normal selling...Ch. 23 - Shasta Fixture Company manufactures faucets in a...Ch. 23 - Flexible budgeting and variance analysis I Love My...Ch. 23 - Direct materials, direct labor, and factory...Ch. 23 - Factory overhead cost variance report Tiger...Ch. 23 - CodeHead Software Inc. does software development....Ch. 23 - Direct materials and direct labor variance...Ch. 23 - Flexible budgeting and variance analysis Im Really...Ch. 23 - Direct materials, direct labor, and factory...Ch. 23 - Factory overhead cost variance report Feeling...Ch. 23 - The Radiology Department provides imaging services...Ch. 23 - Genuine Spice Inc. began operations on January 1...Ch. 23 - Advent Software uses standards to manage the cost...Ch. 23 - Admissions time variance Valley Hospital began...Ch. 23 - United States Postal Service: Mail sorting time...Ch. 23 - Direct labor time variance Maywood City Police...Ch. 23 - Ethics in action Dash Riprock is a cost analyst...Ch. 23 - Variance interpretation Vanadium Audio Inc. is a...Ch. 23 - MinnOil performs oil changes and other minor...Ch. 23 - Marten Company has a cost-benefit policy to...Ch. 23 - Frisco Company recently purchased 108,000 units of...Ch. 23 - JoyT Company manufactures Maxi Dolls for sale in...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
Explain how absolute advantage and comparative advantage differ.

Essentials of Economics (MindTap Course List)

What is the purpose of Form I-9, Employment Eligibility Verification?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

BETA COEFFICIENT Given the following information determine the beta coefficient for Stock J that is consistent ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Why does profit exist?

Economics (MindTap Course List)