× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
T
3
s
3
o
3
G
3
k
3
C
3
a
3
K
3
f
3
j
3
b
3
c
3
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
needanswersnowp needanswersnowp
wrote...
Posts: 23
Rep: 0 0
6 years ago
10) Superior Corporation reports the following standards for direct labor for the year:

Standard cost per hour   $17.75
Standard quantity per finished good   2.0 hours

During the year, 35,000 finished goods were produced. The direct labor efficiency variance was $2,650 favorable. The direct labor flexible budget variance was $550 favorable.

Calculate the following items regarding direct labor for Superior Corporation for the year:

A. Direct labor rate variance
B. Standard hours of direct labor for actual production
C. Actual hours of direct labor incurred for actual production
Read 74 times
1 Reply

Related Topics

Replies
wrote...
#1
Staff Member
6 years ago
A.   Direct labor rate variance

DL Flex Budget Variance = Rate Variance + Efficiency Variance
550 favorable = Rate Variance + 2,650 favorable
So the rate variance must have been 2,650 -550 = $2,100 unfavorable
 
B.   Standard hours of direct labor for actual production

35,000 units were produced and the standard is 2 hours per unit
Standard hours for actual production = 35,000 x 2.0 = 70,000 hours

C.   Actual hours of direct labor incurred for actual production

Efficiency variance = (AH – SH) x SR favorable so AH < SH = -2,650
(AH – 70,000) x 17.75 = -2,650
AH – 70,000 = -2,650/17.75 = -149.3
AH = 70,000 – 149.3 = 69,850.7  (or 69,851)
Ask another question, I may be able to help!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  846 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 357
  
 346
  
 476
Your Opinion
What's your favorite coffee beverage?
Votes: 302
Previous poll results: What's your favorite math subject?