ZuoTi.Pro
Question

Define and explain the basis of the direct labor quantity standard.

Define and explain the basis of the direct labor quantity standard.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The direct labor quantity standard is the amount of time required for producing one unit of the product. This standard plays a crucial role in labor intensive industries as allowances must be made for cleanup time, rest time, machine setup time, machine downtime.

In Labor intensive industries such as apparel, shoe manufacturing etc the workers are continuously working on the production line and the productivity of workers is measured by the amount of time taken to produce one unit of the product. When considering the time required to produce one unit, it is equally important to make allowances for rest, cleanup , machine setup and downtime.

0 0
Add a comment
Know the answer?
Add Answer to:
Define and explain the basis of the direct labor quantity standard.
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity...

    Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Direct labor 0.50 hours $ 30.00 per hour Variable overhead 0.50 hours $ 5.00 per hour In August the company produced 8,900 units using 4,620 direct labor-hours. The actual variable overhead cost was $21,714. The company applies variable overhead on the basis of direct labor-hours. The variable overhead efficiency variance for August is:

  • Standard Quantity or Standard Cost Per Unit Direct materials Direct labor Variable overhead 3.3 liters 2.5...

    Standard Quantity or Standard Cost Per Unit Direct materials Direct labor Variable overhead 3.3 liters 2.5 hours 0.5 hours Standard Price or Rate $ 8.00 per liter $32.00 per hour $ 3.00 per hour $16.00 $ 1.50 The company budgeted for production of 3.600 units in September but actual production was 1500 units The company used 6.440 Mers of direct material and direct labor hours to produce this ou company purchased 6 800 liters of the direct material at $8...

  • Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card...

    Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D specifies 6.4 direct labor-hours per unit of D80D. The standard variable overhead rate is $5.90 per direct labor-hour. During the most recent month, 1,100 units of product D80D were made and 7,100 direct labor-hours were worked. The actual variable overhead incurred was $45,230. Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead...

  • Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours...

    Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.50 ounces 0.50 hours 0.50 hours Standard Price or Rate $28.00 per ounce $13.00 per hour $ 3.60 per hour Standard Cost $ 70.00 6.50 1.80 $ 78.30 For the month of August, Yankee Distilling recorded the following activity related to the production of Ripit: a. Materials purchased, 13,500 ounces at a cost of $361,800. b. There was no beginning inventory of materials; however,...

  • Flandro Company uses a standard cost system and sets its predetermined overhead rate on the basis of direct labor-hours.

    Flandro Company uses a standard cost system and sets its predetermined overhead rate on the basis of direct labor-hours. The following data are taken from the company’s planning budget for the current year: Required: Create a new standard cost card that separates the variable manufacturing overhead per unit and the fixed manufacturing overhead per unit.Compute the materials price and quantity variances. Also, compute the labor rate and efficiency variances.Compute the variable overhead rate and efficiency variances. Also, compute the fixed overhead budget...

  • REQUIRED: Determine the missing values DIRECT-LABOR PRICE AND QUANTITY VARIANCES ACTUAL LABOR COST Actual Actual Hours...

    REQUIRED: Determine the missing values DIRECT-LABOR PRICE AND QUANTITY VARIANCES ACTUAL LABOR COST Actual Actual Hours Price $8.30 Actual Hours X Standard Price $6.90 STANDARD LABOR COST Standard Standard Hours Price 1,500X $6.90 Direct-labor rate variance $197 Unfav. Direct-labor efficiency variance Direct-labor variance DIRECT-MATERIAL PRICE AND QUANTITY VARIANCES ACTUAL MATERIAL COST STANDARD MATERIAL COST Actual Actual Actual Standard Standard Standard Quantity X Price Quantity Price Quantity X Price 420 420 $345.00 435 x $345.00 $2,950 Fav. Direct-material price variance $8.125...

  • Milar Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhe...

    Milar Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 2.0 pounds 8.6 hours 2.6 hours Standard Price or Rate $ 7.00 per pound $14.ee per hour $ 6.00 per hour In January the company produced 4.600 units using 10,120 pounds of the direct material and 2100 direct labor-hours. During the month, the company purchased 10,690 pounds of the direct material at a cost of $76,570. The actual direct labor...

  • Shampoo Water Direct labor Standard Quantity Standard Rate 1.8 oz. $ 0.10 per oz. 16 gal....

    Shampoo Water Direct labor Standard Quantity Standard Rate 1.8 oz. $ 0.10 per oz. 16 gal. $ 0.05 per gal. 1.1 hr. $10.00 per hr. Standard Unit Cost $ 0.18 0.80 11.00 During the month of July, Collin's employees gave 360 baths. The actual results were 730 ounces of shampoo used (cost of $131.40), 6,600 gallons of water used (cost of $528), and labor costs for 300 hours (cost of $3,480). Required: 1. Calculate Suds & Cuts direct materials variances...

  • Chrisman Corporation makes a product with the following standard costs: Inputs Direct materials Direct labor Variable...

    Chrisman Corporation makes a product with the following standard costs: Inputs Direct materials Direct labor Variable overhead Standard Quantity or Hours 8.8 pounds 1.4 hours 1.4 hours Standard Price or Rate $2.00 per pound $20.00 per hour $10.00 per hour The company reported the following results concerning this product in August. Actual output Raw materials used in production Raw materials purchased Actual direct labor hours Actual cost of raw materials purchased Actual cost of direct labor Actual cost of variable...

  • Desue Corporation makes a product with the following standards for labor and variable overhead: Standard Quantity...

    Desue Corporation makes a product with the following standards for labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct labor 0.1 hours $19.00 per hour $1.90 Variable overhead 0.1 hours $7.00 per hour $0.70 The company budgeted for production of 6,500 units in December, but actual production was 6,300 units. The company used 610 direct labor-hours to produce this output. The actual variable overhead rate was $6.40 per hour. The company applies...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT