Question

Direct Labor Variances The following data relate to labor cost for production of 3,200 cellular telephones:...

Direct Labor Variances

The following data relate to labor cost for production of 3,200 cellular telephones:

Actual: 2,180 hrs. at $13.9
Standard: 2,150 hrs. at $14.1

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 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.

Check My Work2 more Check My Work uses remaining.

Previous

Next

Homework Answers

Answer #1

a.

Formula working Variance
Rate variance actual hours * (actual rate - standard rate) 2,180*($13.9-14.10) - $436 favorable variance
Time variance standard rate *(actual hours - standard hours) $14.10*(2180-2150) $423 unfavourable variance
total direct labour cost variance direct labour variance + direct labour cost variance -$436+$423 -$13 favorable variance

b.

The labour may have been less experienced or poorly trained, thereby resulting in a LOWER labour rate than planned. The lower level of experience or training may have resulted in less efficient performance.Thus, the actual time required was more than standard.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Direct Labor Variances The following data relate to labor cost for production of 4,000 cellular telephones:...
Direct Labor Variances The following data relate to labor cost for production of 4,000 cellular telephones: Actual: 2,720 hrs. at $15.6 Standard: 2,680 hrs. at $15.8 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...
Direct Labor Variances The following data relate to labor cost for production of 3,500 cellular telephones:...
Direct Labor Variances The following data relate to labor cost for production of 3,500 cellular telephones: Actual: 2,370 hrs. at $15.40 Standard: 2,330 hrs. at $15.60 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...
Direct Labor Variances The following data relate to labor cost for production of 7,000 cellular telephones:...
Direct Labor Variances The following data relate to labor cost for production of 7,000 cellular telephones: Actual: 4,730 hrs. at $12.7 Standard: 4,660 hrs. at $12.9 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 $ 713,898.9 Favorable Time variance $ 1,226 Unfavorable Total direct labor cost variance $ Favorable...
Direct Labor Variances The following data relate to labor cost for production of 6,000 cellular telephones:...
Direct Labor Variances The following data relate to labor cost for production of 6,000 cellular telephones: Actual: 4,050 hrs. at $16.3 Standard: 3,990 hrs. at $16.6 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...
Direct Labor Variances The following data relate to labor cost for production of 5,300 cellular telephones:...
Direct Labor Variances The following data relate to labor cost for production of 5,300 cellular telephones: Actual: 3,570 hrs. at $15.2 Standard: 3,510 hrs. at $15.5 a. Determine the direct labor The cost associated with the difference between the standard rate and the actual rate paid for direct labor used in producing a commodity.rate variance, direct labor The cost associated with the difference between standard and actual hours of direct labor spent for producing a commodity.time variance, and total direct...
The following data relate to labor cost for production of 6,500 cellular telephones: Actual: 4,410 hrs....
The following data relate to labor cost for production of 6,500 cellular telephones: Actual: 4,410 hrs. at $13.60 Standard: 4,340 hrs. at $13.80 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...
The following data relate to labor cost for production of 5,200 cellular telephones: Actual: 3,500 hrs....
The following data relate to labor cost for production of 5,200 cellular telephones: Actual: 3,500 hrs. at $15.60 Standard: 3,440 hrs. at $15.90 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...
The following data relate to labor cost for production of 6,300 cellular telephones: Actual: 4,280 hrs....
The following data relate to labor cost for production of 6,300 cellular telephones: Actual: 4,280 hrs. at $15.70 $67,196 Standard: 4,210 hrs. at $16.00 $67,360 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter all values as a positive number and then identify the variance (e.g. Favorable or Unfavorable) in the adjacent column. Rate variance $    Time variance $    Total direct labor cost variance $    b. The employees...
The following data relate to labor cost for production of 3,400 cellular telephones: Actual: 2,300 hrs....
The following data relate to labor cost for production of 3,400 cellular telephones: Actual: 2,300 hrs. at $15.30 Standard: 2,260 hrs. at $15.50 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 $ favorable or unfavorable Time variance $ favorable or unfavorable Total direct labor cost variance $ favorable or...
Direct Labor Variances The following data relate to labor cost for production of 4,000 cellular telephones:...
Direct Labor Variances The following data relate to labor cost for production of 4,000 cellular telephones: Actual: 2,710 hrs. at $13.20 Standard: 2,670 hrs. at $13.40 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. Rate variance $    Time variance $    Total direct labor cost variance $   
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT