Question

eramics Etc. is a manufacturer of large tower pots for urtan settings. The company has these standard EEB (Click the loon to view the standards) (Click the icon to view the actual resuits.) Requirements Data Table Ceramics Etc. allocated fixed manufacturing overhead to production based on standard direct labor Data Table hours. Last month, the company reported the following actal results for the production of 1,300 flower pots Purchased 12.880 pounds at a cost of 4.50 per pound, Used 12,480 pounds to produce 1.300 pots Worked 2.5 hours per flower pot (,250 tal DLH) at a cost of $13.00 per hou Dinect materials Direct materials (resin) 9 pounds per pot at a cost of $4.00 per pound 20 hours at a cost of $14.00 per hour Drect labor Drect labor Standard variable manufacturing Achual variatle manufacturing overhead$5.20 per drect labor hour for sotal overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate $5.00 per direct labor hour 20,400 $9.00 per direct lator hour ( actual variable manufacturig overhead of $16.900 $20,000 Actual Ssed manufacturing overhead Standard fised manufacturing averhead allocated based on actual production$23,400 Print Done Print Done Choose from any list or enter any number in the input fields and then continue to the next questia

please just double check my work and correct me if im wrong thank you :)

Answer 1

1	Direct Labour Rate Variance	=	Actual Hours paid * (Standard Rate - Actual Rate)
		=	3250 hours * ( $ 14 - $ 13)
		=	3250 hours* $ 1
		=	$                                                                                 3,250.00		Favourable
	Direct Labour Effeciency Variance	=	Standard Rate * ( Standard Hours allowed - Actual hours Worked)
		=	$ 14* [(1300 * 2 hours) - 3250 hours]
		=	$ 14 * ( 2600 hours - 3250 hours)
		=	$                                                                                 9,100.00		Unfavourable
2	Total Variance for Direct Labour	=	Direct Labour Rate Variance + Direct Labour Effeciency Variance
		=	$ 3,250 + (-$ 9,100)
		=	$                                                                                 5,850.00		Unfavourable
3	Production department is responsible for direct labour effeciency variance and Humen resource or personnel department is responsible for direct labour rate variance.
4	Favourable Direct Labour Rate Variance means that Centerwares employees earned less per hour than budgeted.
	Unfavourable Direct Labour Effeciency Variance means that it actually took more direct labour hours than it should have to produce 1300 pots.
	Note:- Please check it and correct your answer. Thank You. Incase of any query please comment us in the inbox.