Question
Ruth 's Music manufactures harmonicas. Ruth uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and only partial
Ruth 's Music manufactures harmonicas. Ruth uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and only partial data for January exist. Ruth knows that the total direct labor variance for the month was $ 380 F and that the standard labor rate was $ 10 per hour. A recent pay cut caused a favorable labor price variance of $ 0.80 per hour. The standard direct labor hours for actual January outputs were 5 ,650.
Requirements 1. Find the actual number of direct labor hours worked during January. 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 direct labor variance as given.
2. Compute the direct labor rate and efficiency variances. Do these variances suggest that the manager may have made trade-offs? Explain.
(text for re2:) Do these variances suggest that the manager may have made trade-offs? Explain. The ? favorable unfavorable direct labor rate variance combined with the ? favorable unfavorable direct labor efficiency variance suggests that the manager may have used ? higher-paid, more efficient lower-paid, less efficient workers. However, due to the overall net effect, it appears there was ? a reasonable trade-off no trade-off . Choose from any list or enter any number in the input fields and then continue to the next question.
equirement 1. Find the actual number of direct labor hours worked during January. First, find the actual direct labor price rate per hour. T Select the formula, then calculate the actual price per hour. Actual direct labor rate per hour etermine the actual number of direct labor hours worked by setting up the computation of the direct labor variance as given. (Enter the kn ariance as favorable (F) or unfavorable (U).) Ruth's Music Schedule to Compute Actual Direct Labor Hours Flexible budget for actual output Flexible Actual budget variance Direct labor hours Cost per hour Total direct labor cost Flexible budget varianceStep by Step Solution
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