Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Direct Labor Variances The following data relate to labor cost for production of 5,600 cellular telephones; Actual: 3,790 hrs. at $12.80 Standard: 3,730 hrs.

image text in transcribed

Direct Labor Variances The following data relate to labor cost for production of 5,600 cellular telephones; Actual: 3,790 hrs. at $12.80 Standard: 3,730 hrs. at $13.10 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using an unfavorable variance as a positive number. Rate variance Time variance Total direct labor cost variance x Favorable 786 Unfavorable x Favorable b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower have resulted in less efficient performance. Thus, the actual time required was more labor rate than planned. The lower level of experience or than standard. Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit) Favorable variances can be thought of as decreasing costs (a credit) The labor cost variance is the difference between the actual and standard labor cost Consider factors affecting labor performance

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 Practice And Principles

Authors: Jan Bebbington, M. Richard Laughlin, Robert H. Gray, Gray Dave

3rd Edition

1861527713, 978-1861527714

More Books

Students also viewed these Accounting questions