Rundell Music manufactures harmonicas. Rundell uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and only partial data for February exist. Rundell knows that the total direct labor variance for the month was 5300 F and that the standard labor rate was 30 per hour. A recent pay out caused a favorable Isborrate variance of $0.70 per hour. The standard direct labor hours for actual February outputs were 6 850 Read the requirements Requirement 1. Find the actual number of direct labor hours worked during February First, find the actual direct labor price rate per hour. Then, determine the actual number of direct labor hours worked by setting up the computation of the total direct labor variance as given Select the formula, then calculate the actual price per hour. - Actual direct labor rate per hour Determine the actual number of direct labor hours worked by setting up the computation of the total direct labor variance as given. (Enter the known amounts, then determine the missing amounts to solve for the actual direct labor hours. Enter the amounts as positive numbers. Label the variance as favorable (F) or unfavorable (U)) Rundell Music Schedule to Compute Actual Direct Labor Hours Flexible budget Flexible Actual for actual output budget variance Direct labor hours Cost per hour Total direct labor cost Fleable budget variance Requirement 2. Compute the direct labor rate and efficiency variances. Do these variances suggest that the manager may have made trade-offs? Explain (Enter the variances es positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar Label the variances as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor.) Begin by determining the formula for the price variance, then compute the price variance for direct labor ) = DL rate variance Now determine the formula for the efficiency variance, then compute the efficiency variance for direct labor = DL effioeney variance x x Do these variances suggest that the manager may have made trade-offs? Explain that the manager may have used The direct labor rate variance combined with the However, due to the overal net effect, it appears there was Rundell Music manufactures harmonicas. Rundell uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and only partial data for February exist. Rundel knows that the total direct labor variance for the month was $360 F and that the standard labor rate was $9 per hour. A recent pay cut caused a favorable labor rate variance of $0.70 per hour. The standard direct labor hours for actual February outputs were 5,850 Read the requirements Requirement 1. Find the actual number of direct labor hours worked dunng February. First find the actual direct labor price rate per hour. Then, determine the actual number of direct labor hours worked by setting up the computation of the total direct labor variance as given Select the formula, then calculate the actual price per hour = Actual direct labor rale per hour Determine the actual number of direct labor hout amounts to solve for the actual direct labor hours A Requirements - X nown amounts, then determine the missing JU)) Rundell Mu Schedule to Compute Actua Actual 1. Find the actual number of direct labor hours worked during February. First find the actual direct labor rate per hour Then, determine the actual number of direct labor hours worked by setting up the computation of the total direct labor variance as given 2. Compute the direct labor rate and efficiency variancos Do these variances Suggest that the manager may have made trade-os? Explain Direct labor hours Cost per hour Total direct labor cost Print Done Flexible budget variance Requirement 2. Compute the direct labor rate and et ciency variances Do these variances suggest that the manager may have made trade-offs? Explain (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dolar. Label the variances as favorable (F) or unfavorable (U). Abbreviations used DL = Direct labor) Begin by determining the formula for the price variance, then compute the price variance for direct labor J) = DL rate variance Now determine the formula for the efficiency variance, then compute the efficiency variance for dired labor
