Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of labor per pair of shoes. During August, Sole Purpose Shoe Company incurred actual direct labor costs of $65,610 for 7,290 hours of direct labor in the production of 2,300 pairs of shoes. Complete the following table, showing the direct labor variance relationships for August for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable variance, and a positive number for an unfavorable variance. Actual Cost Standard Cost Actual Hours X Actual Rate Actual Hours X Standard Rate Standard Hours X Standard Rate fill in the blank b8e89601ef8d04f_1 X $fill in the blank b8e89601ef8d04f_2 fill in the blank b8e89601ef8d04f_3 X $fill in the blank b8e89601ef8d04f_4 fill in the blank b8e89601ef8d04f_5 X $fill in the blank b8e89601ef8d04f_6 = $fill in the blank b8e89601ef8d04f_7 = $fill in the blank b8e89601ef8d04f_8 = $fill in the blank b8e89601ef8d04f_9
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of labor per pair of shoes. During August, Sole Purpose Shoe Company incurred actual direct labor costs of $65,610 for 7,290 hours of direct labor in the production of 2,300 pairs of shoes.
Complete the following table, showing the direct labor variance relationships for August for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable variance, and a positive number for an unfavorable variance.
| Actual Cost | Standard Cost | |||||||||
| Actual Hours |
X | Actual Rate |
Actual Hours |
X | Standard Rate |
Standard Hours |
X | Standard Rate |
||
| fill in the blank b8e89601ef8d04f_1 | X | $fill in the blank b8e89601ef8d04f_2 | fill in the blank b8e89601ef8d04f_3 | X | $fill in the blank b8e89601ef8d04f_4 | fill in the blank b8e89601ef8d04f_5 | X | $fill in the blank b8e89601ef8d04f_6 | ||
| = $fill in the blank b8e89601ef8d04f_7 | = $fill in the blank b8e89601ef8d04f_8 | = $fill in the blank b8e89601ef8d04f_9 | ||||||||
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| $fill in the blank b8e89601ef8d04f_14 | $fill in the blank b8e89601ef8d04f_15 | |||||||||
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| $fill in the blank b8e89601ef8d04f_18 |
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