ZuoTi.Pro
Question

A company uses the following standard costs to produce a single unit of output. Direct materials...

A company uses the following standard costs to produce a single unit of output.

Direct materials 6 pounds at $1.20 per pound = $ 7.20
Direct labor 0.6 hour at $8.00 per hour = $ 4.80
Manufacturing overhead 0.6 hour at $4.00 per hour = $ 2.40



During the latest month, the company purchased and used 56,000 pounds of direct materials at a price of $1.50 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $43,776 based on 5,760 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $21,000 and fixed manufacturing overhead incurred was $18,000. Based on this information, the direct labor efficiency variance for the month was:

  • A. $4,224 favorable

  • B. $2,304 favorable

  • C. $1,920 unfavorable

  • D. $1,920 favorable

  • E. $2,304 unfavorable

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

Homework Answers

Answer #1

Labor efficiency variance

= (SH - AH) *SR.

= (10,000*0.6 - 5760)*8

= (6000 - 5760)*8

= 1920 Favourable

0 0
Add a comment
Know the answer?
Add Answer to:
A company uses the following standard costs to produce a single unit of output. Direct materials...
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

  • A company uses the following standard costs to produce a single unit of output. Direct materials...

    A company uses the following standard costs to produce a single unit of output. Direct materials Direct labor Manufacturing overhead 6 pounds at $1.2 per pound 0.40 hour at $10.00 per hour 0.40 hour at $4.90 per hour -$7.20 - $4.00 -$1.96 During the latest month, the company purchased and used 56,000 pounds of direct materials at a price of $1.50 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $35,616 based on 3,710...

  • A company uses the following standard costs to produce a single unit of output. Direct materials...

    A company uses the following standard costs to produce a single unit of output. Direct materials 6 pounds at $0.90 per pound = $ 5.40 Direct labor 0.5 hour at $12.00 per hour = $ 6.00 Manufacturing overhead 0.5 hour at $4.80 per hour = $ 2.40 During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month...

  • A company uses the following standard costs to produce a single unit of output. Direct materials...

    A company uses the following standard costs to produce a single unit of output. Direct materials 7 pounds at $0.80 per pound = $ 5.60 Direct labor 0.6 hour at $10.00 per hour = $ 6.00 Manufacturing overhead 0.6 hour at $4.20 per hour = $ 2.52 During the latest month, the company purchased and used 67,000 pounds of direct materials at a price of $1.10 per pound to produce 10,000 units of output. Direct labor costs for the month...

  • A company uses the following standard costs to produce a single unit of output. Direct materials...

    A company uses the following standard costs to produce a single unit of output. Direct materials Direct labor Manufacturing overhead 5 pounds at $0.80 per pound 0.5 hour at $8.00 per hour 0.5 hour at $3.00 per hour -$4.00 -$4.00 -$1.50 During the latest month, the company purchased and used 48,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $36,806 based on 4,780 direct...

  • Whispering Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct ma...

    Whispering Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials—1 pound plastic at $7.00 per pound $ 7.00 Direct labor—2.5 hours at $11.80 per hour 29.50 Variable manufacturing overhead 17.50 Fixed manufacturing overhead 17.50 Total standard cost per unit $71.50 The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($35.00 ÷ 2.5). It was computed from a master manufacturing overhead budget based on normal production of 13,250 direct labor hours...

  • Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materia...

    Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials—1 pound plastic at $6.00 per pound $ 6.00 Direct labor—2.0 hours at $11.85 per hour 23.70 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 12.00 Total standard cost per unit $53.70 The predetermined manufacturing overhead rate is $12.00 per direct labor hour ($24.00 ÷ 2.0). It was computed from a master manufacturing overhead budget based on normal production of 11,800 direct labor hours...

  • Jones Company has the following standards for its single product: standard quantity standard price direct materials...

    Jones Company has the following standards for its single product: standard quantity standard price direct materials 11 pounds per unit $4.25 per pound direct labor 8 hours per unit $14.00 per hour variable overhead 8 hours per unit ?????? per hour Jones Company reported the following information for the month of October: 1. 9,140 units were produced. 2. The direct material quantity variance was $36,295 favorable. 3. The variable overhead spending variance was $1,520 favorable. 4. The total direct labor...

  • Wagner Company developed the following standard costs for its product for 2011: Direct Materials - 4...

    Wagner Company developed the following standard costs for its product for 2011: Direct Materials - 4 pounds at $4.50 per pound Direct Labor - 2 hours at $10.50 per hour Based on their flexible budget, budgeted Manufacturing Overhead costs are $80,000 of fixed costs plus variable costs of $4 per direct labor hour. Normal capacity is set at 20,000 units of product OR 40,000 DIRECT LABOR HOURS. (20,000 units x 2 labor hours per unit) Actual costs for 2011 were...

  • Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below....

    Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials—1 pound plastic at $6 per pound $ 6.00 Direct labor—1.50 hours at $12.20 per hour 18.30 Variable manufacturing overhead 9.00 Fixed manufacturing overhead 15.00 Total standard cost per unit $48.30 The predetermined manufacturing overhead rate is $16 per direct labor hour ($24.00 ÷ 1.50). It was computed from a master manufacturing overhead budget based on normal production of 8,700 direct labor hours...

  • PLEASE ANSWER QUESTIONS CORRECTLY !!!! 1. 2. 3. 4. PLEASE ANSWER QUESTIONS CORRECTLY !!!! Use the...

    PLEASE ANSWER QUESTIONS CORRECTLY !!!! 1. 2. 3. 4. PLEASE ANSWER QUESTIONS CORRECTLY !!!! Use the following data to find the total direct labor cost variance if the company produced 3,500 units during the period. Direct labor standard (4.00 hrs. @ $6.20/hr.) Actual hours worked Actual rate per hour $ 24.80 per unit 12,050 $ 6.30 Multiple Choice . $12,050 favorable 0 $10.885 unfavorable. 0 $10,885 favorable. 0 $1,400 favorable. O $1,400 unfavorable. Fletcher Company collected the following data regarding...

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