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Rudik [331]
3 years ago
8

Ravena Labs., Inc. makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direc

t labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 1.4 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October: 3,750 units of compound were produced during the month. There was no beginning direct materials inventory. Direct materials purchased: 12,000 ounces for $225,000. The ending direct materials inventory was 2,000 ounces. Direct labor-hours worked: 5,600 hours at a cost of $67,200. Variable manufacturing overhead costs incurred amounted to $18,200. Variable manufacturing overhead applied to products: $18,375. The labor efficiency variance for October is:____________
Business
1 answer:
konstantin123 [22]3 years ago
4 0

Answer:

Direct labor time (efficiency) variance= $4,375 unfavorable

Explanation:

Giving the following information:

Direct labor: 1.4 hours at $12.50 per hour

Direct labor-hours worked: 5,600 hours at a cost of $67,200.

Production: 3,750 units

<u>To calculate the direct labor efficiency variance, we need to use the following formula:</u>

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Standard quantity= 3,750*1.4= 5,250

Direct labor time (efficiency) variance= (5,250 - 5,600)*12.5

Direct labor time (efficiency) variance= $4,375 unfavorable

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Converting quarterly and annual business plans into broad output and labor requirements for the intermediate term is known as aggregate planning.

Aggregate planning is a method for developing a business by arranging a management to the production and demands. In this method, the quarterly and annual business plans are converted into broad output and labor requirements for the intermediate term. This intermediate term may last from 4 to 12 months.

In this period of time the company will hire new employees to make enough output to satisfy the demands and thereby maximizing the profit with a minimum cost.

Aggregate planning ensures the efficiency and production of a company. Usually it is done as a prior activity to obtain a continuous production facility.

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10 months ago
Joseph is reviewing secondary data his company collected about seasonal variations in consumer spending because he is thinking a
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The advantages of using secondary data are several, but its main advantage is that it is the cheapest way to gather large sets of information. A lot of secondary data is available on the internet, so it is time saving. Using secondary data saves work, efforts and money.

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7 0
3 years ago
Louise works for a tax firm that caters to individuals and small businesses. Each year when tax season rolls around, the firm is
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The correct answers for the following questions are:

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Regardless of whether it is a Normal or Early retirement, the officer must disengage at the age of 62.

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