Question
23. The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.7 hours Standard labor rate $ 12.50
23. The following labor standards have been established for a particular product:
| |||
Standard labor-hours per unit of output |
| 8.7 | hours |
Standard labor rate | $ | 12.50 | per hour |
The following data pertain to operations concerning the product for the last month:
| |||
Actual hours worked |
| 6,500 | hours |
Actual total labor cost | $ | 78,650 |
|
Actual output |
| 900 | units |
What is the labor efficiency variance for the month?
Multiple Choice
Top of Form
$19,225 F
$19,225 U
$16,093 F
$16,625 F
24. Brand Corporations standards call for 2,875 direct labor-hours to produce 1,150 units of product. During October the company worked 900 direct labor-hours and produced 900 units. The standard hours allowed for October would be:
Multiple Choice
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2,875 hours
1,050 hours
2,250 hours
1,975 hours
25. The following labor standards have been established for a particular product:
| |||
Standard labor-hours per unit of output |
| 8.7 | hours |
Standard labor rate | $ | 15.60 | per hour |
The following data pertain to operations concerning the product for the last month:
| |||
Actual hours worked |
| 8,600 | hours |
Actual total labor cost | $ | 131,580 |
|
Actual output |
| 850 | units |
What is the labor rate variance for the month?
Multiple Choice
Top of Form
$16,218 F
$18,437 U
$16,218 U
$2,580 F
26. Brand Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:
| |||
Budgeted level of activity |
| 9,600 | MHs |
Actual level of activity |
| 9,800 | MHs |
Standard variable manufacturing overhead rate | $ | 8.30 | per MH |
Actual total variable manufacturing overhead | $ | 78,570 |
|
What was the variable overhead rate variance for the month?
Multiple Choice
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$1,415 Favorable
$1,110 Favorable
$1,660 Unfavorable
$2,770 Favorable
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