Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost Actual direct labor-hours worked Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance $ 472,360 15,120 14,248 $45,500 F $ 347,500 $ 21 Actual variable overhead Standard variable overhead rate per standard direct labor-hour Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Direct labor Price variance Efficiency variance Variable overhead: Price variance Efficiency variance
Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost Actual direct labor-hours worked Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance $ 472,360 15,120 14,248 $45,500 F $ 347,500 $ 21 Actual variable overhead Standard variable overhead rate per standard direct labor-hour Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option. Direct labor Price variance Efficiency variance Variable overhead: Price variance Efficiency variance
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...
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Dineshbhai
![Records at the Farnsworth Corporation contained the following data for the most recent period of activity:
Actual total direct labor cost
Actual direct labor-hours worked
Standard direct labor-hours allowed for actual output (flexible budget)
Direct labor price variance
$ 472,360
15,120
14,248
$45,500 F
$ 347,500
$ 21
Actual variable overhead
Standard variable overhead rate per standard direct labor-hour
Variable overhead is applied based on standard direct labor-hours allowed.
Required:
Compute the labor and variable overhead price and efficiency variances.
Note: Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for
unfavorable. If there is no effect, do not select elther option.
Direct labor
Price variance
Efficiency variance
Variable overhead:
Price variance
Efficiency variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff671659e-3fba-4d51-aa5b-bdebcc8cc8c7%2Fe6bd4dd4-9fdf-4003-83d4-3ad2b4d657f3%2Fp7wmds_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Records at the Farnsworth Corporation contained the following data for the most recent period of activity:
Actual total direct labor cost
Actual direct labor-hours worked
Standard direct labor-hours allowed for actual output (flexible budget)
Direct labor price variance
$ 472,360
15,120
14,248
$45,500 F
$ 347,500
$ 21
Actual variable overhead
Standard variable overhead rate per standard direct labor-hour
Variable overhead is applied based on standard direct labor-hours allowed.
Required:
Compute the labor and variable overhead price and efficiency variances.
Note: Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for
unfavorable. If there is no effect, do not select elther option.
Direct labor
Price variance
Efficiency variance
Variable overhead:
Price variance
Efficiency variance
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