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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

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 Decemberexist. Ruth

knows that the total direct labor variance for the month was $300F and that the standard labor rate was$11per hour. A recent pay cut caused a favorable labor price variance of$0.60per hour. The standard direct labor hours for actualDecemberoutputs were5,700.

Requirements

1.

Find the actual number of direct labor hours worked during December. ?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

image text in transcribed

*ACTG-131-HYA-OLH-OM ? Take a rkinna M eChegg Study l Guided Sc x-MInbox (18)-mmcconic@ KCSecure https://www.mathxl.com/Student/PlayerTest.aspx?testld-174630544 Test Ma Requirement 1. Find the acoual rumber ot drect labor hours worked during December. Firs, hnd the actual direct lator pice rate per hour. Then, detemne the actual number of drect labor hours worked by setona up the computation ot the direct labor vanance as gwen. Select the fonmuls, then calculste the actual pnce per hour Actual direct labor rate per hour Determinc the actual numoer of diroct labor hours worked by sctting up the compuration of the drect labor variancc as given (Enter the krown amounts, then ccterminc the missng amcunts to sale for the actual direct labor hours Enter thc amounts as positive numbors Labal the varancc as fa Ruth's Music Schedule to Compute Actual Direct Labor Hours Flexible budge Fexble Diiect labor hcurs Cost per hour Tatal direst atr cnst Requirement 2. Compute the direct labor rate and emciency variances. Do these variances suagest that the manager may have made trade-offe? xolain. (Enter the vanances ae positMe numbers. Enter currency amcunts to the nearest cent and your answers to the nearest whole dolar. Label t Regin hy etermining the frmila for the price varianrr, then rompuhe the price varianre far direct lor )DL rale vari Now deterie the formula for the efficiency variance, then compute the elliciency variance for direct lato. DLettciency vanance Do these vanances suagest than the manager may have mada tradio-otts? Explan. The airect labor rate vaniance combned with thedrect labor emcency vanance sugpests that the manager may have used workers. However, due to the overall net effect, n sppeare there was x 451 PM 5/23/2018 Type here to search n

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