Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (i.e., direct materials
and direct labor) of its single product are: Material (5 kilograms × $6.00 per kilogram) $ 30.00
Labor (5 hours × $19.60 per hour) 98.00
All materials are added at the beginning of processing. The following data were taken from the company’s records for November:
In-process beginning inventory None
In-process ending inventory 600 units, 70% complete as to direct labor
Units completed 6,700 units
Budgeted output 7,100 units
Purchases of materials 61,000 kilograms
Total actual direct labor costs $ 620,000
Actual direct labor hours 34,200 hours
Materials usage variance $ 2,700 Unfavorable
Total materials variance $ 750 Unfavorable
Required:
1. Compute for November:
a. The direct labor efficiency variance. Is this variance favorable (F) or unfavorable (U)?
b. The direct labor rate variance. Is this variance favorable (F) or unfavorable (U)?
c. The actual number of kilograms of material used in the production process during the month.
d. The actual price paid per kilogram of material during the month, the company calculates the direct materials price variance at point of purchase.
e. The amount of direct materials cost and direct labor cost transferred to the Finished Goods Inventory account.
f. The total amount of direct materials cost and direct labor cost in the Work-in-Process Inventory account at the end of the month.
The democratic style of leadership seeks information, opinions, and preferences, sometimes to the point of meeting with the group, leading discussions, and using consensus <span>or majority vote to make the final choice.</span>
Deferred tax liability can be defined as the tax liability which has been due for the current period but has not yet been paid such as installment sales receivable.
Insurance expense of $210,000
Tax rate of 20%
( $210,000 × .20 )
=$42,000
Therefore the amount of the deferred tax liability at the end of 2021 will be $42,000
