Question

Labor Rate and Efficiency Variances Tico Inc. produces plastic bottles. Each bottle has a standard labor...

Labor Rate and Efficiency Variances Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hour. During the month of April, 1,000,000 bottles were produced using 23,600 labor hours @ $18.00. The standard wage rate is $16.00 per hour. Required: Calculate the labor rate and efficiency variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable. Labor rate variance $ Labor efficiency variance $

Homework Answers

Answer #1
Standard Actual
Particulars Hours Rate amount Hours Rate amount
Labour          25,000.00             16.0000       400,000.00          23,600.00                  18.00       424,800.00
Actual output    1,000,000.00
Labour hrs reqd (1000,000*.025)          25,000.00
DLRV= (SR-AR)AH
DLRV= (16 - 18)23,600
DLRV= 47,200 U
DLEV = (SH-AH)SR
DLEV = (25,000 - 23,600)16
DLEV = (1,400)16
DLEV = 22,400 F
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
Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.01 hours. During...
Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.01 hours. During the month of April, 530,000 bottles were produced using 15,000 labor hours @ $10.75. The standard wage rate is $8.75 per hour. Required: Calculate the total variance for production labor for the month of April. Enter amounts as positive numbers. If required, round your answer to the nearest cent. $ __________________________
Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches Rath Company provided the following information:...
Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches Rath Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour $3.75 Actual variable overhead costs $222,816 Actual direct labor hours worked (AH) 57,200 Actual production in units 15,000 Standard hours (SH) allowed for actual units produced 60,000 Required: 1. Using the columnar approach, calculate the variable overhead spending and efficiency variances. Enter amounts as positive numbers. (1) (2) (3)                   Spending Efficiency...
Standard Costing Botella Company produces plastic bottles. The unit for costing purposes is a case of...
Standard Costing Botella Company produces plastic bottles. The unit for costing purposes is a case of 18 bottles. The following standards for producing one case of bottles have been established: Direct materials (4 lbs. @ $0.95) $ 3.80 Direct labor (1.25 hours @ $15.00) 18.75 Standard prime cost 22.55 During December, 78,000 pounds of material were purchased and used in production. There were 15,000 cases produced, with the following actual prime costs: Direct materials $ 74,000 Direct labor $315,000 (for...
Direct Labor Variances Bellingham Company produces a product that requires 5 standard direct labor hours per...
Direct Labor Variances Bellingham Company produces a product that requires 5 standard direct labor hours per unit at a standard hourly rate of $17.00 per hour. If 5,300 units used 25,700 hours at an hourly rate of $17.68 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...
1. O’Brien Vineyards has the following direct materials standard to manufacture one bottle of Pinot Noir:...
1. O’Brien Vineyards has the following direct materials standard to manufacture one bottle of Pinot Noir: 2.4 pounds of grapes per bottle at $1.65 per pound Last week, 5,415 pounds of grapes were purchased and used to make 2,125 bottles. The grapes cost a total of $9,043.05. What is O’Brien Vineyards materials quantity variance and the materials price variance? (Don’t forget to indicate if the variances are favorable or unfavorable). What are 2 possible reasons for the variances? 2. O’Brien...
Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost...
Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Cost Category Standard Cost per 100 Two-Liter Bottles Direct labor $1.12 Direct materials 5.26 Factory overhead 0.24 Total $6.62 At the beginning of July, GBC management planned to produce 440,000 bottles. The actual number of bottles produced for July was 475,200 bottles. The actual costs for July of the current year were as follows: Cost Category...
Materials Variances Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a standard...
Materials Variances Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a standard costing system and has set the following standards for materials and labor: Leather (3 strips @ $4) $12.00 Direct labor (0.75 hr. @ $12) 9.00 Total prime cost $21.00 During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 299,500 strips at $3.30 per strip. There were no beginning or ending inventories of leather. Actual direct labor...
Direct Labor Variances Bellingham Company produces a product that requires 9 standard direct labor hours per...
Direct Labor Variances Bellingham Company produces a product that requires 9 standard direct labor hours per unit at a standard hourly rate of $20.00 per hour. If 2,100 units used 18,500 hours at an hourly rate of $20.40 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...
Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance Guillermo's Oil and Lube...
Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 24 minutes and 6.2 quarts of oil are used. In June, Guillermo's Oil and Lube had 980 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month...
Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost...
Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Cost Category Standard Cost per 100 Two-Liter Bottles Direct labor $4.00 Direct materials 9.10 Factory overhead 0.55 Total $13.65 At the beginning of July, GBC management planned to produce 380,000 bottles. The actual number of bottles produced for July was 385,000 bottles. The actual costs for July of the current year were as follows: Cost Category...