Question
27. Denver Enterprises recently used 14,000 labor hours to produce 7,500 completed units. According to manufacturing specifications, each unit is anticipated to take two hours
27. Denver Enterprises recently used 14,000 labor hours to produce 7,500 completed units. According to manufacturing specifications, each unit is anticipated to take two hours to complete. The company's actual payroll cost amounted to $158,200. If the standard labor cost per hour is $11, Denver's labor efficiency variance is:
A. $11,000U.
B. $11,000F.
C. $11,300U.
D. $11,300F.
E. none of the above.
Answer: B
Alex Company recently completed 10,600 units of its single product, consuming 32,000 labor hours that cost the firm $480,000. According to manufacturing specifications, each unit should have required 3 hours of labor time at $15.40 per hour. On the basis of this information, determine Alexs labor rate variance and labor efficiency variance.
|
| Rate | Efficiency | |
| A. | $12,720F |
| $3,000F |
| B. | $12,720F |
| $3,000U |
| C. | $12,800F |
| $3,080F |
| D. | $12,800F |
| $3,080U |
| E. | $12,800U |
| $3,080U |
Answer: D
Please show work(:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Advanced Accounting
Authors: Susan S. Hamlen
3rd Edition
1618531514, 978-1618531513
