1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mel-nik [20]
3 years ago
12

After evaluating Null Company’s manufacturing process, management decides to establish standards of 3 hours of direct labor per

unit of product and $15 per hour for the labor rate. During October, the company uses 16,250 hours of direct labor at a $247,000 total cost to produce 5,600 units of product. In November, the company uses 22,000 hours of direct labor at a $335,500 total cost to produce 6,000 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable.
Business
1 answer:
docker41 [41]3 years ago
8 0

Answer:

Direct labor rate variance = (SR - AR) \times AH

October = ($15 - $15.20)  \times 16,250 = - $3,250 Unfavorable

November = ($15 - $15.25)  \times  22,000 = - $5,500 Unfavorable

Direct Labor Efficiency Variance = (SH - AH)  \times  SR

October = (16,800 - 16,250)  \times $15 = 8,250 Favorable

November = (18,000 - 22,000) \times $15 = - $60,000 Unfavorable

Direct Labor Cost Variance = Standard Cost - Actual Cost

October = $252,000 - $247,000 = $5,000 Favorable

November = $270,000 - $335,500 = - $65,500 Unfavorable

Explanation:

Computing variances for each month

Particulars                            October                  November          Equation

Total units produced           5,600 units             6,000 units            (a)

Standard hour per unit           3 hours                   3 hours                (b)

Total standard hour SH          16,800                   18,000              (c) = (a)*(b)

Total standard cost

of labor @ $15 SR per hour  $252,000                $270,000          (d) = (c) * 15

Actual hours used AH           16,250                    22,000                  (e)

Actual cost                            $247,000               $335,500                (f)

Actual Rate per hour AR          $15.20                   $15.25              (g) = (f)/(e)

Using the above information we have

Direct labor rate variance = (SR - AR) \times AH

October = ($15 - $15.20)  \times 16,250 = - $3,250 Unfavorable

November = ($15 - $15.25)  \times  22,000 = - $5,500 Unfavorable

Direct Labor Efficiency Variance = (SH - AH)  \times  SR

October = (16,800 - 16,250)  \times $15 = 8,250 Favorable

November = (18,000 - 22,000) \times $15 = - $60,000 Unfavorable

Direct Labor Cost Variance = Standard Cost - Actual Cost

October = $252,000 - $247,000 = $5,000 Favorable

November = $270,000 - $335,500 = - $65,500 Unfavorable

You might be interested in
If the market elasticity of demand for potatoes is -0.3 in a perfectly competitive market, then the individual farmer's elastici
Ymorist [56]

Answer:

The correct answer is option C.

Explanation:

A perfectly competitive firm faces a perfectly elastic demand curve. In a perfectly competitive market, there is a large number of buyers and sellers, such that no single firm is able to affects the price or output level. The demand curve faced by a single firm is a horizontal line.  

The market demand curve, on the other hand, is downward sloping. So whatever be the market elasticity of demand, the elasticity of individual firm will be infinite.

5 0
3 years ago
According to liquidity preference theory investment spending would rise if the price level
ANTONII [103]

Answer:

A.rose making the interest rate fall

Explanation:

According to the liquidity preference theory developed by John Keynes, if the money supply rises, price level also rises, interest rate falls. If interest rate falls, the price of bond rises which would increase capital gains. People would prefer to hold bonds instead of money, therefore, investment spending would rise.

The liquidity preference theory states that we hold money for transactive, speculative and precautionary motives.

4 0
3 years ago
What global market-entry strategy did mary kay use when it entered india?
sdas [7]

The global market entry strategy that Mary Kay used when it entered India was the exporting market entry strategy. The priorities of Mary Kay when doing business was God first, family second and career third. In India however it was adapted that faith first, family second and career third.  Mary Kay does this for the purpose of the religion and for the sake of respecting those who practice their religions.


8 0
3 years ago
Read 2 more answers
Desktop management__________.a. increases the cost of configuration management over the long termb. requires managers to install
ryzh [129]

Answer:

C) automatically produces documentation of software installed on each client computer

Explanation:

Desktop management refers to managing all the company's computers. Even though the word desktop is used, it includes managing and overseeing all the devices of the organization including laptops, tablets and even smartphones. Desktop management is a part of systems management.

8 0
3 years ago
A customer owns shares of restricted stock and now intends to sell them. if the proper forms are filed with the sec, the custome
lapo4ka [179]

A customer owns shares of restricted stock and now intends to sell them. if the proper forms are filed with the sec, the customer may sell these shares Over a 90-day period.

The stock exchange is a marketplace where securities, commodities, derivatives, and other financial instruments are traded. The central function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information regarding securities trading on that exchange.

The exchange enables businesses to raise capital and investors to make informed decisions based on real-time pricing information. An exchange can be a physical location or an electronic trading platform. Bitcoin He is like one stock and advisers do not recommend investing the majority of his portfolio in one company. Planners suggest that if you're passionate about Bitcoin, don't invest more than 1% to 10% in it at most.

Learn more about stock here

brainly.com/question/25818989

#SPJ4

6 0
2 years ago
Other questions:
  • A manufactured product has the following information for June. Standard Actual Direct materials (5 lbs. @ $7 per lb.) 39,400 lbs
    15·1 answer
  • Synergy is obtained by apportioning financial resources among divisions to increase financial returns or spread risks among diff
    10·1 answer
  • The first broad scan of all potential world markets should result in the firm being able to ________.
    7·1 answer
  • One form of warehousing that features light manufacturing and packaging duties and allows firms to put off final assembly or pac
    11·1 answer
  • Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January: Issued 10,000 shares of common s
    8·1 answer
  • what would happen in the market for loanable funds if the government were to increase the tax on interest income the demand for
    10·2 answers
  • Regarding risk levels, financial managers should
    13·1 answer
  • when resources are purchased from outsiders through long term contracts instead of being made in house, this process is referred
    10·1 answer
  • Diamond Boot Factory normally sells their specialty boots for $26 a pair. An offer to buy 70 boots for $18 per pair was made by
    5·1 answer
  • In addition to providing products and services, which of the following can a business often create? Need for economic policy cha
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!