The records of the Penney Company show the following for February:
Standard Labor hours allowed per unit of output 1.5
Standard variable overhead rate per
standard direct labor hour $30
Good units produced 60,000
Actual direct labor hours worked 92,000
Actual total direct labor $ 1,975,000
Direct labor efficiency variance $40,000 U
Actual variable overhead $2,560,000
Compute the direct labor and variable overhead price and efficiency variances.© BrainMass Inc. brainmass.com October 25, 2018, 4:50 am ad1c9bdddf
See attached file.
I created a diagram in excel so you have a ...
I created a diagram in excel so you have a template for future work and so you have a visual that helps you to see the key to unlocking this puzzle (noticing the ratio of standard rates between VOH and labor). Computations are in cells (click to see).
Accounting Problems to find labor efficiency variance, direct labor cost, and variable overhead efficiency variance.
The following labor standards have been established for a particular product:
Standard Labor-hour per unit of output 8.0 hours
Standards labor rate $13.10 per hour
The following data pertain to operation concerning the product for the last month:
Actual hours worked 4,000 hours
Actual total cost $53,000
Actual output 400 units
What is the labor efficiency variance for the month?
A) $10,600 U
B) $11,080 U
C) $11,080 F
D) $10,480 U
The following information pertains to Bates Company's direct labor for March:
Standard direct labor-hours 21,000
Actual direct labor-hours 20,000
Favorable direct labor rate variance $8,400
Standard direct labor rate per hour $6.30
What was Bates' total direct labor cost for March?
The following standards for variable manufacturing overhead have been established for a company that makes only one product:
Standard hours unit of output 5.6 hours
Standard variable overhead rate $19.15 per hour
The following data pertain to operation for the last month:
Actual hours 5,100 hours
Actual total variable overhead cost $99,195
Actual output 1,100 units
What is the variable overhead efficiency variance for the month?
A) $20,299 F
B) $18,769 F
C) $1,8484 F
D) $20,617 F