An unfavorable direct labor rate variance is recorded as a debit.
True
False
True | |
Unfavorable labor rate variance is debited to labor rate variance account and Favourable labor rate variance is credited. Comment if you face any issues |
An unfavorable direct labor rate variance is recorded as a debit. True False
What is the direct labor rate variance? 50 unfavorable 125 unfavorable 125 favorable The following information for Q 7-8 The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% normal production capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was S3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,800 units. 7. The variable factory...
Compute the direct labor rate variance and the direct labor
efficiency variance. Indicate whether each variance is favorable or
unfavorable.
Use the following information for the Exercises below. [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Actual a lbs. @ $8.20 per Direct materials 60,700 lb. Direct labor Standard (7 lbs. @ $8 per lb.) (2 hrs. @ $16 per hr.) (2 hrs. @ $12 per hr.) 16.999 hrs. @...
Which of the following will result in an unfavorable direct labor PRICE variance? when actual direct labor hours exceed standard direct labor hours when actual direct labor hours are less than standard direct labor hours when the actual direct labor rate exceeds the standard direct labor rate when the actual direct labor rate is less than the standard direct labor rate
If the labor quantity variance is unfavorable and the cause is inefficient use of direct labor, the responsibility rests with the controller's department. sales department. production department. budget office.
Recording variances for direct labor requires two separate journal entries: one for the rate variance, and one for the efficiency variance. True False
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $13.20 Standard labor time per faucet 10 min. Standard number of lbs. of brass 1.2 lbs. Standard price per lb. of brass $11.75 Actual price per lb. of brass $12.00 Actual...
Which of the following is true if the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed? a. Materials Usage Variance Unfavorable; Materials Efficiency Variance Favorable b. Labor Rate Variance Favorable; Labor Efficiency Variance Favorable c. Labor Rate Variance Unfavorable; Labor Efficiency Variance Unfavorable d. Materials Usage Variance Favorable; Materials Efficiency Variance Unfavorable
Which of the following is true of direct labor variances? a. The labor efficiency variance measures the difference between what was paid to direct laborers and what should have been paid. b. The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that should have been used. c. The labor rate variance measures the difference between the labor hours that were originally budgeted and the labor hours that should have been...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,200 units of product were as follows: Standard Costs Actual Costs Direct materials 6,800 lb. at $4.60 6,700 lb. at $4.40 Direct labor 1,300 hrs. at $18.10 1,330 hrs. at $18.50 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
3073 1 Frontera Company's output for the current period results in a $23,000 unfavorable direct labor rate variance and a $11,000 unfavorable direct labor efficiency variance. Production for the current period was assigned a $410,000 standard direct labor cost. What is the actual total direct labor cost for the current period? Actual total direct labor cost 11 of 24 < Prey Next >