Sunshine Company has the following direct labor standard for its Sunny Sunglasses. 1.2 standard hours per sunglass at $10.00 per hour Last month, employees actually worked 2,500 hours at a total labor cost of $26,250 to make 2,000 sunglasses. What is the labor rate variance? What is the labor efficiency variance? Identify the possible reasons for the variances? Who will be held responsible for the variances found?

Sunshine Company has the following direct labor standard for its Sunny Sunglasses. 1.2 standard hours per sunglass at $10.00 per hour Last month, employees actually worked 2,500 hours at a total labor cost of $26,250 to make 2,000 sunglasses. What is the labor rate variance? What is the labor efficiency variance? Identify the possible reasons for the variances? Who will be held responsible for the variances found?

Name: Sunshine Company has the following direct labor standard for its Sunny
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Sunshine Company has the following direct labor standard for its Sunny Sunglasses. 1.2 standard hours per sunglass at $10.00 per hour Last month, employees actually worked 2,500 hours at a total labor cost of $26,250 to make 2,000 sunglasses.What is

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 10EA: ThingOne Company has the following information available for the past year. They use machine hours...

See similar textbooks

Similar questions

Reddy Corporation has collected the following data for the month or June: What is the variable overhead efficiency variance?
Basix Inc. calculates direct manufacturing labor variances and has the following information: 1. Actual hours worked: 200 2. Standard hours allowed for actual output: 250 3. Actual rate per hour: $12 4. Standard rate per hour: $10 Given the information above, which of the following is correct regarding direct manufacturing labor variances? A. The price and efficiency variances are unfavorable. B. The price variance is favorable, while the efficiency variance is unfavorable. C. The price and efficiency variances are favorable. D. The price variance is unfavorable, while the efficiency variance is favorable.
Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $21.00 per hour. 15,100 units used 65,100 hours at an hourly rate of $19.35 per hour. What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance $ b. Direct labor time variance $ c. Direct labor cost variance $
Harsha Ltd. Corporation wants to know about the variance in production cost.it is noted that mostly variance is related to labor variance. Actual labor hours consumed are 28 hours at the rate of 12 dollars per hour. While standard hours was 41 hours with standard rate of 20 per hour. You are required to find the Labor Efficiency Variance, Labor rate Variance. Interpret your results.
1. What is the actual cost per gram of the special alloy that Collegiate Rings purchased last month? 2. What is the direct material price variance? 3. What is the direct material quantity variance? 4. How might the direct material price variance for the company last month be causing the direct material quantity variance?
1. What is the actual (direct labor) wage rate per hour paid last month? 2. What is the direct labor rate variance? 3. What is the direct labor efficiency variance? 4. How might the direct labor rate variance for the firm last month be causing the direct labor efficiency variance?
Parkdale Courier Service employs several delivery specialists. The following reports the information for these specialists for April: $18.20 per hour $19.30 per hour 16,400 hours $ 14,560 U Standard rate Actual rate paid. Standard hours allowed for actual deliveries Labor efficiency variance Required: Based on these data, what was the number of actual hours worked and what was the labor price variance? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Actual hours worked Labor price variance hours
A manager prepared the following table by which to analyze labor costs for the month: Actual hours at Actual rate is P10,000; Actual hours at Standard rate is P9,800 and Standard hours at Standard rate, P 8,820. What variance is P1,180? * idle labor variance labor efficiency variance labor spending variance total labor variance
World Class Rings produces class rings. Its best-selling model has a direct materials standard of 16 grams of a special alloy per ring. This special alloy has a standard cost of $63.30 per gram. In the past month, the company purchased 16,800 grams of this alloy at a total cost of $1,061,760. A total of 16,300 grams were used last month to produce 1,000 rings. Read the requirements. (...) Requirement 1. What is the actual cost per gram of the special alloy that World Class Rings purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that World Class Rings purchased last month is
Thorne Company has the following information available for the past year. They use machine hours to allocate overhead. NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. What is the variable overhead efficiency variance? Is it favorable or unfavorable?
Bellingham Company produces a product that requires 2 standard direct labor hours per unit at a standard hourly rate of $10.00 per hour. If 4,600 units used 8,800 hours at an hourly rate of $10.50 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance b. Direct labor time variance 2$ c. Direct labor cost variance
Japan Company produces lamps that require 2 standard hours per unit at an hourly rate of $20.40 per hour. Production of 3,300 units required 6,800 hours at an hourly rate of $21.00 per hour. Enter favorable variances as negative numbers. a) Determine the direct labor rate variance. b) Determine the direct labor time variance. c) Determine the cost variance.