Question

For each of the following independent cases, fill in the missing amounts in the table: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Direct Labor Rate Direct Labor Direct Labor Case Variance Efficiency Variance Spending Variance 2,800 F 1,550 U $ $ А 1,900 U 1,200 F $ $ В 3,400 F 1,800 F $ $ C 4,100 U 1,300 U $ $ D 1,900 F 2,750 U $ $ Е 1,950 U 1,450 U $ $

Answer 1

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An Disect Labor spending variance = Direct labor rate variance Su = negative LF = positive Disect labor efficiency Lariance A. Disect Lobar spending variance = - 1550 + 2800 = 1250 1200 + Disect Labor Efficiency = - 1900 – 1900 - 1200 The refore Direct Labor Efficiency = = 3100 U 1800+ bisect laboz Efficiency = 3400 - bisect labor Efficienca = 3400-1800 = 1600 F bisect Labar sate variance - 1300 = - 4100 • Direct Labor sate variance = 2800 U E Direct Labor sate lasiancet 1900 = -27.50 . Dizect Labor sate variance = -2750 - 1900 = 4650 U 77 Disect Labor spending variance = - 1450-1950 = 3400 U

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