Flapjack Corporation had 7,817 actual direct labor hours at an actual rate of $12.00 per hour. Original production had been budgeted for 1,100 units, but only 971 units were actually produced. Labor standards were 7.6 hours per completed unit at a standard rate of $12.83 per hour. The direct labor rate variance is Oa. $6,488.11 unfavorable Ob. $6,488.11 favorable Oc. $5,238.10 unfavorable Od. $5,238.10 favorable

Flapjack Corporation had 7,817 actual direct labor hours at an actual rate of $12.00 per hour. Original production had been budgeted for 1,100 units, but only 971 units were actually produced. Labor standards were 7.6 hours per completed unit at a standard rate of $12.83 per hour. The direct labor rate variance is Oa. $6,488.11 unfavorable Ob. $6,488.11 favorable Oc. $5,238.10 unfavorable Od. $5,238.10 favorable

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Description: Flapjack Corporation had 7,817 actual direct labor hours at an actual rate of $12.00 per hour. Original production had been budgeted for 1,100 units, butonly 971 units were actually produced. Labor standards were 7.6 hours per completed unit at a st

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 12PA: ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc....

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Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured 115,000 units. The standard cost sheet indicates that the standard direct labor cost per unit is $1.50. The performance report for the period includes an unfavorable direct labor rate variance of $3,700 and a favorable direct labor time variance of $10,275. What was the total actual cost of direct labor incurred during the period?
ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5.000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance?
Calculating amount of factory overhead applied to work in process The overhead application rate for a company is 2.50 per unit, made up of 1.00 for fixed overhead and 1.50 for variable overhead. Normal capacity is 10,000 units. In one month, there was an unfavorable flexible budget variance of 200. Actual overhead for the month was 27,000. What was the amount of the budgeted overhead for the actual level of production?
Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted, 12,000 units were produced. The Purchasing department bought 50,000 lb of materials at a cost of $237,500. Actual pounds of materials used were 46,000. Direct labor cost was $287,500 for 25,000 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
Carlo Lee Corp. has established the following standard cost per unit: Although 10,000 units were budgeted, only 8,800 units were produced. The purchasing department bought 55,000 lb of materials at a cost of $123,750. Actual pounds of materials used were 54,305. Direct labor cost was $186,550 for 18,200 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: During the year, the company had the following activity: Actual fixed overhead was 12,000 less than budgeted fixed overhead. Budgeted variable overhead was 5,000 less than the actual variable overhead. The company used an expected actual activity level of 12,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. Required: 1. Compute the unit cost using (a) absorption costing and (b) variable costing. 2. Prepare an absorption-costing income statement. 3. Prepare a variable-costing income statement. 4. Reconcile the difference between the two income statements.
The following data relate to direct labor costs for the current period: Standard costs 7,300 hours at $11.30 Actual costs 6,200 hours at $10.40 What is the direct labor rate variance? a.$18,010 unfavorable b.$5,580 favorable c.$18,010 favorable d.$12,430 favorable The Flapjack Corporation had 7,768 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 965 units were actually produced. Labor standards were 8.0 hours per completed unit at a standard rate of $13.20 per hour. The labor rate variance is $6,214.40 unfavorable $6,214.40 favorable $1,003.00 unfavorable $1,003.00 favorable
Lee Company’s operations for April discussed the following data relating to direct labor: Actual cost P10,000 Rate variance (favorable) 1,000 Efficiency variance (unfavorable) 1,500 Standard cost P9,500 Actual direct labor hours for the month of April amounted to 2,000. What was the standard direct labor hourly rate? Select one: P4.75 P5.50 P4.50 P5.00 5.50
Flapjack Corporation had 7,849 actual direct labor hours at an actual rate of $12.30 per hour. Original production had been budgeted for 1,100 units, but only 975 units were actually produced. Labor standards were 7.7 hours per completed unit at a standard rate of $12.96 per hour. The direct labor rate variance is Oa. $5,180.34 unfavorable Ob. $5,180.34 favorable Oc. $4,628.02 unfavorable Od. $4,628.02 favorable
Information on Orman Company's direct labor costs is as follows:Standard direct labor rate $3.75, Actual direct labor rate $3.50, Standard direct labor hours 10,000, Direct labor usage (efficiency) variance—unfavorable P4,200. What were the actual hours worked, rounded to the nearest hour? 10,714 11,120 11,200 11,914
The following data relate to direct labor costs for the current period: Standard costs 7,300 hours at $11.80 Actual costs 6,400 hours at $10.00 The direct labor time variance is Oa. $10,620 unfavorable Ob. $9,000 favorable C. $9,000 unfavorable Od. $10,620 favorable