Question

For each of the following independent cases, fill in the missing amounts: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable. Round your per unit rates to 2 decimal places.) Kevin, Inc. Jess Company Valerie, Inc. Casey Co. 2,400 4.30 160 1,000 1.30 1,690 464 11.00 $ $ $ Units produced Standard hours per unit Standard hours Standard rate per hour Actual hours worked Actual labor cost Direct labor rate variance Direct labor efficiency variance 22.30 9,900 1,785 10 9,000 58,600 $ $ $ 3,500 200 U $ 3,100 F I $ $ 1,700 F 1,216 U $ 4,600 U

Answer 1

Casey Co.:

Standard hours = Units produced * Standard hours per unit
Standard hours = 2,400 * 4.30
Standard hours = 10,320

Direct labor rate variance = Actual labor cost - Actual hours worked * Standard rate per hour
-$3,100 = Actual labor cost - 9,900 * $22.30
Actual labor cost = $217,670

Direct labor efficiency variance = Standard rate per hour * (Actual hours worked - Standard hours)
Direct labor efficiency variance = $22.30 * (9,900 - 10,320)
Direct labor efficiency variance = $9,366 Favorable

Kevin, Inc.:

Standard hours = Units produced * Standard hours per unit
1,690 = Units produced * 1.30
Units produced = 1,300

Direct labor efficiency variance = Standard rate per hour * (Actual hours worked - Standard hours)
$1,216 = Standard rate per hour * (1,785 - 1,690)
Standard rate per hour = $12.80

Direct labor rate variance = Actual labor cost - Actual hours worked * Standard rate per hour
-$1,700 = Actual labor cost - 1,785 * $12.80
Actual labor cost = $21,148

Jess Company:

Standard hours = Units produced * Standard hours per unit
464 = 160 * Standard hours per unit
Standard hours per unit = 2.90

Direct labor rate variance = Actual labor cost - Actual hours worked * Standard rate per hour
$200 = $3,500 - Actual hours worked * $11.00
Actual hours worked = 300

Direct labor efficiency variance = Standard rate per hour * (Actual hours worked - Standard hours)
Direct labor efficiency variance = $11.00 * (300 - 464)
Direct labor efficiency variance = $1,804 Favorable

Valerie, Inc.:

Direct labor efficiency variance = Standard rate per hour * (Actual hours worked - Standard hours)
$4,600 = $10.00 * (9,000 - Standard hours)
Standard hours = 8,540

Standard hours = Units produced * Standard hours per unit
8,540 = 1,000 * Standard hours per unit
Standard hours per unit = 8.54

Direct labor rate variance = Actual labor cost - Actual hours worked * Standard rate per hour
Direct labor rate variance = $58,600 - 9,000 * $10.00
Direct labor rate variance = $31,400 Favorable