. Which of the following variances helps managers to identify how effective Human Resources was in negotiating employment contracts with employees?
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Correct answer is option : C) Direct Labor rate variance.
Direct labor rate variance will help manager to identify how effective Human Resources negotiating employment contracts with employees
. Which of the following variances helps managers to identify how effective Human Resources was in...
DRUMMOND’s Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Flexible ------------Variances------------- Budget Price Efficiency Material A $20,000 $1,000F $3,000U Material B 30,000 500U 1,500F Direct manufacturing labor 40,000 500U 2,500F [Please note that Flexible Budget is the same as standard costs of material or labor at actual production. Also Price is the same...
PA9-1 (Algo) Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5] Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (clay) 1.70 lbs. $ 1.80 per lb. $ 3.06 Direct labor 1.70 hrs. $ 11.00 per hr. 18.70 Variable manufacturing overhead (based on direct labor hours) 1.70 hrs. $ 1.10 per hr. 1.87 Fixed manufacturing overhead ($420,500.00 ÷ 145,000.00 units) 2.90 Barley Hopp...
In order to indicate to managers the trend and materiality of variances, a business firm expresses them as percentages as in the following examples where (A) indicates an adverse variance and (F) indicates a favorable variance. July August September Material price variance as a % of standard cost of material used 1% (A) 2% (F) 7% (F) Material usage variance as a % of standard total production cost3% (F) 4% (A) 6% (A) The following statements relate to recent operational...
1.Which of the following is true about "management by exception"? It requires managers to investigate all favorable and unfavorable variances. It requires the use of variance analysis. It rarely requires the use of variance analysis. It requires managers to calculate standard costs, but ignore actual costs. None of the answer choices is correct. 2.Which of the following is most likely to cause an unfavorable direct materials quantity variance? Low quality materials increased waste of materials. High quality materials reduced waste...
A manufacturer had the following information: Budget Actual Units produced 10,000 11,050 Materials used in production 400 kg ? Material Costs $ 8,000 ? Direct Labour (Hours) 35,000 hrs 41,010 hrs Direct Labour Costs $ 385,000 $450,951 Variable Overhead Costs $ 350,000 $411,441 Fixed Overhead Costs $ 160,000 $136,358 Other Information Overhead is Allocated on Direct Labour Hours During the year, 602 kg of materials were purchased for $12,000 Beginning Direct Material Inventory:...
If you could show work it would be greatly appreciated SallyMay, Inc., designs and manufactures T-shirts. It sells its T-shirts to brand name clothes retailers in lots of one dozen. SallyMay's May 2013 static budget and actual results for direct inputs are as follows: Static Budget Number of T-shirt lots (1 lot1 dozen) 400 Per Lot of T-shirts: Direct materials 14 meters at $1.70 per meter$23.80 Direct manufacturing labor 1.6 hours at $8.10 per hour $12.96 Actual Results Number of...
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come from material costs that are higher or lower than expected, material usage that is not what was expected, higher or lower labor costs than expected, or more or less time spent to produce an item than expected. Overhead cost and volume variances are another cause for costs to be higher or lower than what was expected. The total manufacturing variance can be broken down...
Handley Manufacturing Company has prepared the following flexible budget for August and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Flexible Variances Budget Price Efficiency Material A $ 50 comma 000$50,000 $ 2 comma 000$2,000F $ 4 comma 000$4,000U Material B 62 comma 00062,000 300300U 1 comma 6001,600F Direct manufacturing labor 80 comma 00080,000 700700U 2 comma 3002,300F The most likely explanation of the above direct manufacturing labor variances...
Which of the following variances exists only under absorption costing? options: production-volume variance efficiency variances spending variance sales-volume variance Question 2 (0.33333333 points) General Media manufactures cassettes and CDs in separate divisions utilizing one plant location. The following data have been prepared for review. Fixed operation costs $900,000 Practical capacity 2,500 hours Budgeted usage: Cassette Division 2,000 hours CD Division 350 hours Budgeted variable cost per hour $400 per hour What is the fixed cost per year and the variable...
The following data were drawn from the records of Solomon Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs 4,100 units 4.00 pounds @ $1.60 per pound 2.10 hours @ $5.00 per hour $ 18,450 4,500 units 3.60 pounds @ $2.00...