Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Davenport Construction Associates compares actual results with a flexible budget. The standard direct labor rates used in the flexible budget are established each year at

Davenport Construction Associates compares actual results with a flexible budget. The standard direct labor rates used in the flexible budget are established each year at the time the annual plan is formulated and held constant for the entire year. The standard direct labor rates in effect for the current fiscal year and the standard hours allowed for the actual output of remodeling work for September are shown in the following schedule: Worker Classification Standard Direct Labor Rate per Hour Standard Direct Labor-Hours Allowed for Output I $ 24 460 II 24 460 III 15 460 The wage rates for each labor class increased under the terms of a new contract. The standard wage rates were not revised to reflect the new contract. The actual direct labor-hours worked and the actual direct labor rates per hour experienced for the month of September were as follows: Worker Classification Actual Direct Labor Rate per Hour Actual Direct Labor-Hours I $ 30 560 II 24 750 III 20 420 Required: (a) Calculate total direct labor variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input the amount as positive value. Omit the "$" sign in your response.) Total direct labor variance $ (b) Calculate direct labor price and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "$" sign in your response.) Direct labor price variance $ Efficiency variance $ (c) Calculate Direct labor mix and yield variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your final answer to nearest dollar value. Do not round your intermediate calculations. Omit the "$" sign in your response.) Direct labor mix $ Yield variances $

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

Financial Accounting

Authors: W Steve Albrecht, Earl K Stice

11th Edition

0538746955, 9780538746953

More Books

Students also viewed these Accounting questions