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Lexxx Company makes a widget that is known worldwide for its high quality! These widgets sell for $40 each. The standard cost card is shown below: Standard Cost Card - Lexxx Widget DM 2.6 pounds X $4.00/# $ 10.40 DL 0.50 DLH $16/DLH 8.00 FOH 0.50 DLH $10/DLH 5.00 (Variable - $2/DLH, Fixed - $8/DLH) Standard Cost$ 23.40 This period, 9,000 widgets were produced. Normal capacity this period was 8,000 widgets. The following actual data was gathered: • Sales - the 9,000 widgets produced were sold for a total of $361,800. • DM - 24,000 pounds of DM were purchased and used in production at a cost of $86,400. • DL - 4,600 DLH were used at a total cost of $74,060. • V FOH - Actual Variable FOH was $9,800. • F FOH - Actual Fixed FOH was $33,000. Let's examine direct labor (DL) variances. The DL COST variance is |Choose ] The standard quantity of DLH for production | Choose ) is The DL. EFFICIENCY variance is |Choose) The total DL variance for the period is [Choose) Lexxx Company makes a widget that is known worldwide for its high quality! These widgets sell for $40 each. The standard cost card is shown below: Standard Cost Card - Lexxx Widget DM 2.6 pounds X $4.00/# $ 10.40 DL 0.50 DLH $16/DLH 8.00 FOH 0.50 DLH $10/DLH 5.00 (Variable - $2/DLH, Fixed - $8/DLH) Standard Cost$ 23.40 This period, 9,000 widgets were produced. Normal capacity this period was 8,000 widgets. The following actual data was gathered: • Sales - the 9,000 widgets produced were sold for a total of $361,800. • DM - 24,000 pounds of DM were purchased and used in production at a cost of $86,400. • DL - 4,600 DLH were used at a total cost of $74,060. • V FOH - Actual Variable FOH was $9,800. • F FOH - Actual Fixed FOH was $33,000. Let's examine direct labor (DL) variances. The DL COST variance is |Choose ] The standard quantity of DLH for production | Choose ) is The DL. EFFICIENCY variance is |Choose) The total DL variance for the period is [Choose)
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Answer rating: 100% (QA)
The DL COST variance is 460 U The standard quantity of DLH for production is 4500 ... View the full answer
Related Book For
Operations Management in the Supply Chain Decisions and Cases
ISBN: 978-0073525242
6th edition
Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein
Posted Date:
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