Neighborhood Farming LLC. manufactures frozen vegetables and provided the following information related to their direct labor costs: Rate Hour Standard $15.60 0.80 Actual $17.00 0.60 Actual production was 6,000 units of packaged vegetables while the planned production was 5,000 units. Determine the direct labor rate variance. Group of answer choices $11,400 unfavorable $5,040 unfavorable -$5,040 favorable -$11,400 favorable

Neighborhood Farming LLC. manufactures frozen vegetables and provided the following information related to their direct labor costs: Rate Hour Standard $15.60 0.80 Actual $17.00 0.60 Actual production was 6,000 units of packaged vegetables while the planned production was 5,000 units. Determine the direct labor rate variance. Group of answer choices $11,400 unfavorable $5,040 unfavorable -$5,040 favorable -$11,400 favorable

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 4PA: April Industries employs a standard costing system in the manufacturing of its sole product, a park...

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Neighborhood Farming LLC. manufactures frozen vegetables and provided the following information related to their direct labor costs: Info Regarding Direct Labor Costs Data Rate Hour Standard $15.60 0.80 Actual $17.00 0.60 Actual production was 6,000 units of packaged vegetables while the planned production was 5,000 units. Determine the direct labor rate variance. Group of answer choices -$5,040 favorable $5,040 unfavorable -$11,400 favorable $11,400 unfavorable
Neighborhood Farming LLC. manufactures frozen vegetables and provided the following information related to their direct labor costs: Information for Direct Labor Costs Data Rate Hour Standard $15.60 0.80 Actual $17.00 0.60 Actual production was 6,000 units of packaged vegetables while the planned production was 5,000 units. Determine the direct labor time variance. Group of answer choices -$18,720 favorable $13,680 unfavorable -$13,680 favorable $18,720 unfavorable
Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All materials used were bought during the current period. A. Compute the material and labor variances. B. comment on the results and possible causes of the variances.
Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All material used was bought during the current period. A. Compute the material and labor variances. B. Comment on the results and possible causes of the variances.
Stuart Fruit Basket Company makes baskets of assorted fruit. The standard and actual costs of oranges used in each basket of fruit follow. Standard Actual 9.40 Average number of oranges per basket Price per orange 9.00 x $0.30 x $0.25 Cost of oranges per basket $2.70 $2.35 Stuart actually produced 26,500 baskets. Required a. Determine the materials price variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the materials usage variance and indicate whether it is favorable (F) or unfavorable (U). (For all requirements, Select "None" if there is no effect (i.e., zero variance).) a. Total materials price variance b. Total materials usage variance
Example-2Variable manufacturing overhead variance analysis. The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Sourdough Bread Company:Direct manufacturing labor use 0.02 hours per baguetteVariable manufacturing overhead $10.00 per direct manufacturing labor-hourThe Sourdough Bread Company provides the following additional data for the year ended December 31, 2017:Required:Planned (budgeted) outputActual productionDirect manufacturing laborActual variable manufacturing overhead3,100,000 baguettes 2,600,000 baguettes 46,800 hours$617,7601. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Sourdough Bread budgeting?)2.…
XYZ Company makes one product and has calculated the following amounts for direct labor: AH x AR = $84,000; AH x SR = $83,000; SH x SR = $85,000. Compute the direct labor cost variance. Multiple choice question. $1,000 U $1,000 F $2,000 F $2,000 U
In good accounting form, compute for the:1. Price variance2. Efficiency variance3. Materials variance Maricol company uses a standard costing system in connection with the manufacture of their product "x". each unit of the finished product contains 2 yards of a direct material. However, a 20% direct material spoilage calculated on input quantities occurs during the manufacturing process. The standard cost of the direct material is p3 per yard. for the month, the company purchased 100,000 yards of the direct material for p350,000 and used 90,000 yards to produce 40,000 units of material x.
ABC Company produces jackets. The following DM standards are for each jacket: Standard Quantity Standard Price 9 yards $4.00 per yard Fabric Actual results were as follows: Number of jackets produced Yards of fabric purchased Yards of fabric used Cost of fabric purchased The direct material price variance is: O$6,000 unfavorable O$14,000 favorable O$6,000 favorable 7,000 70,000 65,000 $266,000 $14,000 unfavorable None of the other answers are correct
AGL Inc. provided the following data related to the direct labor costs for the current period: Data Related to Direct Labor Costs Data Rate Hours Standard $17.50 12,000 Actual $15.50 14,000 Determine the direct labor rate variance. Group of answer choices $7,000 unfavorable $28,000 unfavorable -$28,000 favorable -$7,000 favorable
Bluebird Bakery produces bread sticks and uses a standard cost accounting system. The primary direct material is flour. Here are data regarding Bluebird's production activity for the month of May: Standard quantity of flour per batch Standard price per pound of flour Actual price paid for flour Actual quantity of flour purchased and used Spending variance for flour What is the direct material quantity variance for flour? O $4,950 favorable O $5,250 unfavorable O $6,450 favorable $7,650 unfavorable O None of the above 100 pounds $1.20 per pound $1.35 per pound 5,000 pounds $5,700 favorable
JKL Company is using a direct labor cost standard of 4 hours and a P12 wage rate per hour for one of its products. Planned production was 300 units, but actual production was 250 units, using for each unit 3 labor hours at a P13 wage rate. What is the labor price variance? Group of answer choices P750 unfavorable P900 unfavorable P1,200 favorable P750 favorable