Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Company began operations on June 1, 2019. For its first month of operations, ABC Company established the following standards for one unit of its

ABC Company began operations on June 1, 2019. For its first month of operations, ABC Company established the following standards for one unit of its single product: standard quantity standard price

direct materials 3 pounds $3.90 per pound direct labor 5 hours $16.00 per hour variable overhead 5 hours $7.40 per hour fixed overhead 5 hours $8.10 per hour The following information is available for the month of June: 1. 37,000 pounds of direct materials were purchased at a total cost of $107,300. 2. 38,000 direct labor hours were worked at a total cost of $617,500. 3. The variable overhead cost for the month totaled $325,000. 4. The fixed overhead cost for the month totaled $290,000. 5. 7,800 units were produced. 6. At June 30, ABC Company had 6,000 pounds of direct materials on hand. 7. The denominator hours for June were 41,000 hours. Calculate the total direct labor variance for June. If the variance is favorable, enter an F after your number with a space between the number and the F (i.e., 10,000 F). If the variance is unfavorable, enter a U after your number with a space between the number and the U (i.e., 10,000 U). Do not use decimals in your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

9th Canadian Edition

978-1119786818, 1119786819

More Books

Students also viewed these Accounting questions

Question

Have I allowed for this item in my budget?

Answered: 1 week ago