The following data relate to labor cost for production of 5,000 cellular telephones: Actual: 3,360 hrs. at $15.9 Standard: 3,310 hrs. at $16.2 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance Sfill in the blank 1 FavorableUnfavorable Time variance Sfill in the blank 3 FavorableUnfavorable Total direct labor cost variance
Q: Loretta Inc. is suing one of its customers for one million dollars. The likelihood of winning the…
A: The contingent asset refers to an economic benefit that could or could be realized by a business…
Q: Privack Corporation applies overhead to products based on the standard direct labor-hours allowed…
A: Predetermined Overhead Rate is a pre-established formula used to allocate indirect manufacturing…
Q: Headland Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2025,…
A: Notes payable is one of the form of liability in business. On these notes, regular interest payments…
Q: Vero, Inc. began operations at the start of the current year, having a production target of 68,000…
A: A greater gross margin suggests that a firm keeps a bigger amount of its sales as profit after…
Q: The Thomas Company has established a target rate of return of 15% for all of its divisions. In 20x8,…
A: The profit earned by the entity in excess of the net operating income is referred to as residual…
Q: Jordan Corporation has four divisions: the assembly division, the processing division, the machining…
A: The responsibility performance report is the budget which shows the comparison between the budgeted…
Q: Required information [The following information applies to the questions displayed below.] AMP…
A: Section 179 was introduced to enhance capital investment. Section 179 for 2022 provides that the…
Q: Haven Company has accumulated the following budget data for the year 2022: Sales: 30,000 units;…
A: Income statement is the financial statement which is prepared by the entity for the purpose of…
Q: *Based on machine-hours. During June, the plant produced 3,000 pools and incurred the following…
A: Variance analysis Analysis of differences between planned and actual behavior. After analyzing…
Q: Total payments over the 20 years are $963,578 ($4,014.91 x 240 monthly payments). How much of this…
A: Interested expenses typically refers to the cost incurred by a company when it represents the…
Q: Required information [The following information applies to the questions displayed below.] Aces…
A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…
Q: On January 1, 2025, Nancy White signed an agreement, covering 5 years, to operate as a franchisep of…
A: Answer:- A method of selling products and services that is based on a relationship between the local…
Q: On June 30, 2023, Sharma Corp. sold equipment for its fair value of $300,000. The equipment had a…
A: we need to determine Sharma Corp.'s equipment rent expense for the year ended December 31, 2023,…
Q: results for the month of February: Revenue Technician wages Mobile lab operating expenses Office…
A: The revenue and spending variance is the difference between the actual and flexible budget data. The…
Q: Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two…
A: The direct method of allocation is used to allocate the cost of the service department to the other…
Q: (3) Units-of-production method: Year Units-of-Production 2024 2025 2026 2027 2028 eTextbook and…
A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…
Q: 2. For transactions (a) to (f). record the adjusting entries on December 31, 2023.
A: Adjusting journal entries are made at the end of an accounting period to update accounts for accrued…
Q: Required information [The following information applies to the questions displayed below] The…
A: Accounting Equation is calculated using following equation -Assets = Liabilities + EquityEvery…
Q: Required information [The following information applies to the questions displayed below.] Pacific…
A: Weighted average cost method calculates the average cost of all inventory items based on the prices…
Q: November 1 Accepted a $17,000, 180-day, 8% note from Kelly White in granting a time extension on her…
A: The note is a written document in which the issuer of the note makes a promise to the lender that…
Q: Primara Corporation applies overhead to products based on the standard direct labor-hours allowed…
A: Standard costing is the costing system that helps in comparing the actual performance with the…
Q: J.Lo's Clothiers has forecast credit sales for the fourth quarter of the year: Fourth Quarter…
A: Cash collection budget :— This budget is prepared to estimate the collection of sales from customers…
Q: During Year 2, the company experienced the following events: 1. Purchased inventory that cost $5,000…
A: Accounting equation:Assets = Liabilities + Stockholders' equity
Q: Selling price Variable costs per unit: Direct materials Direct labor Variable overhead Total…
A: Production with limited factor we need to calculate contribution margin for limited key factor.…
Q: Webster Company produces 30,000 units of product A, 24,000 units of product B, and 16,000 units of…
A: Under the net realizable value method, joint costs are allocated based on the total sales value less…
Q: Brooke, a single taxpayer, works for Company A for all of 2023, earning a salary of $64,000. Note:…
A: Social security tax: Employee's pension and benefit for disability are secured through the social…
Q: Same fact pattern. On the last day of 2022, Brendle&Garcia Energy Consultants acquire a rooftop…
A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…
Q: Northeast Lobster currently has 20,600 shares of stock outstanding. It is considering issuing…
A: Stock is used to describe the ownership certificates of the company that Is divided into types…
Q: Kingbird, Inc. purchased a new machine on October 1, 2022, at a cost of $133,000. The company…
A: Depreciation method refers to the systematic approach or technique used to allocate the cost of a…
Q: 3. La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following…
A: Direct labor variance is the difference between standard direct labor cost for actual production and…
Q: 7. Ford Company reports depreciation expense of $60,000 for Year 2. Also, equipment costing $201,000…
A: Cash flow from investing activity includes transactions related to the cash purchase or sale of…
Q: Ravena Labs., Incorporated makes a single product which has the following standards: Direct…
A: Labor Efficiency Variance measures the difference between the actual hours worked and the standard…
Q: Use transaction analysis charts to analyze the following adjustments: a. Depreciation on equipment,…
A: Journal entry means the book of original entry where the first time transaction is recorded. After…
Q: Explain two (2) similarities and three (3) differences between IFRS and US GAAP with respect to…
A: Accounting is the practice of recording, summarizing, analyzing, and interpreting financial…
Q: Total Assets for a company are $700,000: Accounts Payable is $75,000 Bonds Payable is $225,000;…
A: A common size balance sheet expresses each asset, liability, and equity item as a percentage of…
Q: Estimating Doubtful Accounts Easy Rider International is a wholesaler of motorcycle supplies. An…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.…
Q: Prepare a classified balance sheet. (Note: $31,725 of the mortgage note payable is due for payment…
A: Balance sheet is one of financial statement being prepared in business. It shows all assets,…
Q: Explain two similarities and three differences between IFRS and US GAAP with respect to accounting…
A: Companies in the United States operate under the generally accepted accounting principles (GAAP),…
Q: Entry for Factory Labor Costs The weekly time tickets indicate the following distribution of labor…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing…
A: A form of fee known as a service charge is gathered to cover costs related to the acquisition of the…
Q: On July 1, 2025, Swifty Co. pays $14,328 to Nash Insurance Co. for a 3-year insurance policy. Both…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: a. Calculate a predetermined overhead rate based on the number of units of product ex of the year.…
A: In accounting overhead costs refer to ongoing business expenses not directly tied to producing a…
Q: he following are comparative balance sheets and an income statement for Wentworth Company. Cash…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Express Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Metlock Company had planned to complete its latest batch of pillar candles before year-end, but it…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units are calculated by adding equivalent…
Q: On June 30, 2024, Single Computers issued 6% stated rate bonds with a face amount of $200 million.…
A: Issue price of bonds would be the present value of the interest annuity & maturity amount at…
Q: Lakeland Co. has already manufactured 18,000 units of Product X at a cost of $15 per unit. The…
A: The main objective of every business enterprise is to earn profit by satisfying the customers needs.…
Q: A fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches. The restaurant…
A: Sales mix refers to the proportion of units sold in the case of multi product sales. In such cases,…
Q: Runner Stage Supplies is a manufacturer of a specialized type of light used in theaters. Information…
A: S.NoMarginal CostingAbsorption Costing1As the name suggest itself variable cost is considered in…
Q: What does the term is Audit risk mean?
A: Audit: It refers to the examination, analysis, evaluation, or review of the company's financial…
Step by step
Solved in 3 steps
- Recompute the variances from the second Acme Inc. exercise using $0.0725 as the standard cost of the material and $14 as the standard labor cost per hour. How has your explanation of the variances changed?Ribcos labor cost information for making its only product for March is as follows: A. What is the direct labor rate variance? B. What is the direct labor time variance? C. What is the total direct labor variance?At the end of the period, the factory overhead account has a credit balance of 10,000. (a) Is the total factory cost variance favorable or unfavorable? (b) Are the controllable and volume variances favorable or unfavorable?
- Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $4.00 per pound) Direct labor (1.8 hours @ $12.00 per hour) $ 12.00 21.60 33.30 Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 66.90 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Maintenance 30,000 135,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 70,000 Depreciation-Machinery Taxes and insurance 16,000 Supervisory salaries 254,500 Total fixed overhead costs 364,500The following data relate to labor cost for production of 20,000 cellular telephones: 8,450 hrs. at $22.50 8,400 hrs. at $23.00 Actual: Standard: a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance Time variance Total direct labor cost variance b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower training may have resulted in less ✔efficient performance. Thus, the actual time required was more 50 X Favorable Unfavorable Favorable V ✓ ✓ ✓labor rate than planned. The lower level of experience or ✓than standard.The following data relate to labor cost for production of 5,900 cellular telephones: Actual: 3,970 hrs. at $16.10 Standard: 3,910 hrs. at $16.30 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance Time variance 2$ Total direct labor cost variance b. The employees may have been less-experienced or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was than standard.
- Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.)The following data relate to labor cost for production of 5,100 cellular telephones: Actual: 3,430 hrs. at $12.70 Standard: 3,380 hrs. at $13.00 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. 1,266 X 910 X -368 X Rate variance Favorable Unfavorable ✓ Time variance Total direct labor cost variance Favorable •✓ b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower may have resulted in less ✔efficient performance. Thus, the actual time required was more ✓ ✔labor rate than planned. The lower level of experience or training ✔than standard.The following data relate to labor cost for production of 3,300 cellular telephones: Actual: 2,210 hrs. at $14.20Standard: 2,180 hrs. at $14.40 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Line Item Description Amount Variance Rate variance $fill in the blank 1 Time variance $fill in the blank 3 Total direct labor cost variance $fill in the blank 5
- Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price Standard or Hours or Rate Cost $5 per foot ? per hour Direct materials 3 feet $ 15 Direct labor ? hours ? During March, the company purchased direct materials at a cost of $45,375, all of which were used in the production of 2,350 units of product. In addition, 4,800 direct labor-hours were worked on the product during the month. The cost of this labor time was $50,400. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 2,250 U $ 3,400 U $ 1,000 U Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month's production. c. Compute the standard hours allowed per unit of…The following data relate to labor cost for production of 4,600 cellular telephones: Actual: 3,130 hrs. at $14.70 Standard: 3,080 hrs. at $15.00 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance $fill in the blank 1 Time variance $fill in the blank 3 Total direct labor cost variance $fill in the blank 5The following data relate to labor cost for production of 33,000 cellular telephones: Actual: 6,330 hrs. at $49.50 Standard: 6,240 hrs. at $51.00 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance $fill in the blank 1 Time variance $fill in the blank 3 Total direct labor cost variance $fill in the blank 5 b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was than standard.