Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer A, B, C Problem 8-25B Determining labor price and usage variances As noted in Problem 8-24B. Watonga Swimsuit makes swimsuits. In 2018, Watonga produced

answer A, B, C
image text in transcribed
Problem 8-25B Determining labor price and usage variances As noted in Problem 8-24B. Watonga Swimsuit makes swimsuits. In 2018, Watonga produced its most popular swimsuit, the Sarong, for a standard labor price of $33.60 per hour. The standard amount of labor was 10 hour per swimsuit. The company had planned to produce 100,000 Sarong swimsuits. At the end of 2018, the company's cost accountant reported that Watonga had used 107.000 hours of labor to make 102,000 swimsuits. The total labor cost was $3,723,600. Required a. Should the labor variances be based on the planned volume of 100,000 swimsuits or on the actual volume of 102.000 swimsuits? b. Prepare a table that shows the standard labor price, the actual labor price, the standard labor hours. and the actual labor hours. c. Compute the labor price variance and indicate whether it is favorable (F) or unfavorable (U). d. Compute the labor usage variance and indicate whether it is favorable (F) or unfavorable (U)

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

Auditing And EDP Objective Questions And Explanations

Authors: Irvin N Gleim, William A. Hillison

4th Edition

0917537432, 978-0917537431

More Books

Students also viewed these Accounting questions

Question

Explain the process of MBO

Answered: 1 week ago

Question

explain the need for human resource strategies in organisations

Answered: 1 week ago

Question

describe the stages involved in human resource planning

Answered: 1 week ago