Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following data relate to labor cost for production of 5 , 3 0 0 cellular telephones: Actual: 3 , 5 9 0 hrs .

The following data relate to labor cost for production of 5,300 cellular telephones:
Actual: 3,590 hrs. at $14.10
Standard: 3,530 hrs. at $14.40
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 a minus sign and an unfavorable variance as a positive number.
Rate variance $fill in the blank 1
Time variance $fill in the blank 3
Total direct labor cost variance $fill in the blank 5
b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a
labor rate than planned. The lower level of experience or training may have resulted in
efficient performance. Thus, the actual time required was
than standard.

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

Auditing and Assurance services an integrated approach

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

14th Edition

133081605, 132575957, 9780133081602, 978-0132575959

More Books

Students also viewed these Accounting questions

Question

What does it mean when ????2 is 10% more than ????2?????????????

Answered: 1 week ago

Question

Describe the problems in the administration of disciplinary action.

Answered: 1 week ago

Question

Explain discipline and disciplinary action.

Answered: 1 week ago