Sage Corporation uses a standard cost system to account for the costs of its one product....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sage Corporation uses a standard cost system to account for the costs of its one product. Standards are 3.00 pounds of materials at $14.0 per pound and 4.0 hours of labor at a standard wage rate of $12.00. During July, Sage Corporation produced 3,300 units. Materials purchased and used totaled 10,950 pounds at a total cost of $144,350. Payroll totaled $157,014 for 13,420 hours worked. Required: a. Calculate the direct labor rate variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the direct labor efficiency variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the direct labor spending variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). a. Rate Variance b. Efficiency Variance c. Spending Variance Sage Corporation uses a standard cost system to account for the costs of its one product. Standards are 3.00 pounds of materials at $14.0 per pound and 4.0 hours of labor at a standard wage rate of $12.00. During July, Sage Corporation produced 3,300 units. Materials purchased and used totaled 10,950 pounds at a total cost of $144,350. Payroll totaled $157,014 for 13,420 hours worked. Required: a. Calculate the direct labor rate variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the direct labor efficiency variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the direct labor spending variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). a. Rate Variance b. Efficiency Variance c. Spending Variance
Expert Answer:
Answer rating: 100% (QA)
To calculate the direct labor variances well use the following formulas a Direct Labor Rate Variance ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
ABC Company had the following transactions during July. 1-Jul Beginning inventory 100 units $80 each 2-Jul Purchase 120 units $82 each 10-Jul Sale 90 units 13-Jul Sale 50 units 15-Jul Purchase 50...
-
Considere una persona fsica que se dedica a dar servicios profesionales durante el ao 2019. Sabiendo que para el ISR: Renta Neta Tasa Hasta 3,628,000 No sujeto a impuesto Sobre el exceso de 3,628,000...
-
Regent Corp uses a standard cost system to account for the costs of its one product. Materials standards are 2.8 pounds of material at $13 per pound and 2 hours of labor at a standard wage rate of...
-
When developing cost functions, which of the following statements is FALSE? A. Personal observations of costs and activities provide the best evidence of a plausible relationship between a cost and...
-
It takes 9.77 mL of 0.883 M H2SO4 to titrate 15.00 mL of KOH to its equivalence point. What is the original concentration of the KOH solution?
-
What is cloud computing and what are its advantages for CRM?
-
What are the reasons for share repurchases?
-
You are provided with the following information for Barton Inc. Barton Inc. uses the periodic method of accounting for its inventory transactions. March 1 Beginning inventory 2,000 liters at a cost...
-
i want to calculate the total gallons sold current quarter and how to rounddown the tubs used current year? Flavor Vanilla Chocolate Strawberry Maple Walnut Praline Butter Pecan Chocolate Chip Mint...
-
Consider a supply chain where a manufacturer sells to a distributor who sells to a wholesaler who sells to a retailer. Last year, the retailer's weekly variance of demand was 3000 units. The weekly va
-
A company\'s balance sheet as of December 31, 2022, reported total assets of $15,921, total liabilities of $7,183, and common stock of $2,630. The company reported $4,161 total revenues for the year...
-
For a successful organizational change, what internal or external issues will need to be addressed by an organization's leadership team? What policies can be implemented that can clearly articulate...
-
Which letter gives the expression for the integral to the right? -3 - (0.5 x - 0.5)dx Answer 1 A-> 4 x -1 B-> x- - 0.5 x 4 C-> 0.5 x3 0.5 x D-> 0.5 x3 0.5 E->> 0.5 x 2 - 0.5 x -3 F-> 2x4
-
Demo Sales month-end is July 31, 2017. Using the following accounts necessary, prepare a Classified, Multi-Step Income Statement in good form. Sales $562,140 Accounts Receivable 37,000 Unearned...
-
Using the information given, find the value of the constant of integration in y=f(x). dy dx 1 == x2 +3x y = f(x) passes through (2,1) 0 9 -21 2 1.5
-
Los costos de oportunidad incluyen las entradas de efectivo quepodran generarse a partir de los activos que la empresa ya poseesi esos activos no se utilizan para el proyecto que se estevaluand 1...
-
Write the general quadratic equation y2 - 8y - 4x + 28 = 0 in standard form. Determine the vertex, focus, and directrix of the parabola defined by this equation. Sketch a graph.
-
The U. S. dollar. The primary reason for using the dollar was that it provided a relatively stable benchmark, and it was accepted universally for transaction purposes.
-
Compare investments with different cash flows and residual values (Learning Objectives 2, 4) Java Cafe is considering two possible expansion plans. Plan A is to open eight cafes at a cost of...
-
Evaluate an investment using all four methods (Learning Objectives 2, 4) Zippi manufactures motorized scooters in Oakland, California. The company is con sidering an expansion. The plan calls for a...
Study smarter with the SolutionInn App