1a)
The standard cost card of a particular product specifies that it
requires 3.0 direct labor-hours at $10.20 per direct labor-hour.
During March, 4,000 units of the product were produced and direct
labor wages of $120,750 were incurred. A total of 15,000 direct
labor-hours were worked. The direct labor variances for the month
were:
Labor Rate Variance | Labor Efficiency Variance | |
A) | $1,650 F | $28,124 U |
B) | $1,650 F | $30,600 U |
C) | $32,250 F | $28,124 U |
D) | $32,250 F | $30,600 U |
Option A
Option B
Option C
Option D
1b)
Fruchter Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:
Hours | |||
Move time | 26.7 | ||
Wait time | 1.9 | ||
Queue time | 0.3 | ||
Process time | 3.9 | ||
Inspection time | 10.9 | ||
The throughput time was:
rev: 08_01_2016_QC_CS-56553
37.6 hours
43.7 hours
41.8 hours
6.1 hours
Labor Rate Variance = 120750-(15000*10.20)= $32,250 F |
Labor Efficiency Variance = 10.20*(15000-4000*3)= $30,600 U |
Option D $32,250 F and $30,600 U is correct |
1b |
Throughput time = Move time +Queue time +Process time +Inspection time |
Throughput time = 26.7+0.3+3.9+10.9= 41.8 hours |
Option 3 41.8 hours is correct |
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