Question

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This Question: 1 pt This Quiz: 4 pts possible 2 of 4 (0 complete) Ceramics Etc. is a manufacturer of large flower pots for uban settings. The company has these standards (Click the loon to view the standards) m (Cack the icon to view the actual results) Read the requiremerts Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the varlances as positive numbers. Enter the ourency amounts in the formulas to the nearest cent, then round the fnal variance amounts to the nearest whole dolar. Label the variance as favorabie (F) or unfavorable (U). Abbreviations used: DL Drect labor) variance for direct labor Actual Results DL sale aanance Standard Price and Volume Ceramics Etc. alocated fixed manufacturing overhead to production based on standard direct labor hours. Last month, the company reported the following actual resuts for the production of 2.000 fnower pots Direct materals (resn) 12 pounds per pot at a cost of $6.00 Direct materials Purchased 25,500 pounds at a cost of per pound s6 20 per pound Used 24,800 pounds to Direct isbor 2.0 hours at a cost of $16.00 per hour produce 2,000 pots Standard vaiable manufacturing Direct labor Worked 2.3 hours per flower pot (4,000 overhead rate $3.00 per direct labor hour total DLH) at a cost of $14.00 per hour Budgeted fied manufachuring overhead $38,000 Actual variable manufacturing overhead $3.40 per direct lobor hour for total Standard fixed MOH rate $10.00 per direct labor hour (DLH) actual vaiable manufacturing overhead of $15,640 Actual fixed manufacturing overhead $37,400 Print Done Standard fxed manufacturing overhead alocated based on actual production $40,000 This 2 of 4 (0 complete) This Question: 1 pt Ceramics Etc. is a manufacturer of large flower pots for urban settings. The company has these standards ( Click the icon to view the actual results.) (Click the icon to view the standards.) Read the requirements. Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor DL rate varianoe x( x( Now compute the direct labor efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. DL efficiency variance x( х( Requirement 2. What is the total variancee for direct labor? (Enter the amount as a positive number Label the variance as favorable (F) or unfavorable (U)) The total variance for direct labor is Requirement 3. Who is generally responsible for each variance?" department is responsible for the labor efficiency variance. The department is responsible for the labor rate variance. The Requ human resources or personnel that Grand Ceramics' employees eaned per hour than budgeled The production purchasing direct labor houns than it should have to produce 2,000 pots. The heans that it actualy took sales Requirement 2. What is the total variance for direct labor? (Enter the amount as a positive number. Label the variance as favorable (F) or unfavorable (U).) The total variance for direct labor is Requirement 3. Who is generally responsible for each variance? department is responsible for the labor efficiency variance. The department is responsible for the labor rate variance. The Requirement 4. Interpret the variances. human resources or personnel The labor rate variance means that Grand Ceramics' employeos eamed production The labor efficiency variance means that it actually took direct labor hours purchasing ts sales Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

Requirement-1

Labour Rate Variance= (SR-AR)X Actual Hour Used

=($16/Hour- 14/Hour)X 4600 Hour

=$9200 Favourable

Labour Efficeincy Variance= (SH-AH)X SR

=($4000Hour- 4600Hour)X $16

=$9600 UnFavourable

SH=2000X2 Hour= 4000 Hour

Requirement-2

Total Direct Labour Variance= $9200 Fav+ $9600 Unfav= $400 Unfav

Requirement-3

a.Human Resources or personnel

b. Production

Requirment-4

The Favourable labour rate variance means that Grand Ceramics Employees Earned less per Hour than Budgeted

The UNFavourable labour efficiency variance means that it actually tooks more direct labour Hour