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3 years ago

The labor efficiency variance for October is: Multiple Choice $3,750 Favorable $4,375 Unfavorable $1,400 Favorable

Business

1 answer:

True [87]3 years ago

4 0

Question

Ravena Labs., Inc. makes a single product which has the following standards:

Direct materials: 2.5 ounces at $20 per ounce

Direct 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: Multiple Choice $1,400 Favorable $1,900 Unfavorable $3,750 Favorable $4,375 Unfavorable

Answer:

Efficiency variance $52,500 Unfavorable

Explanation:

Labour efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours allowed for same multiplied by the standard labour rate .

Hours

3,750 units should have taken (1000×1.4 hours ) = 1,400

but did take 5,600

efficiency variance in (hours) 4,200 unfavorable

Standard rate × $12.50

Efficiency variance $52,500 Unfavorable

Efficiency variance $52,500 Unfavorable

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Answer:

The option with the quarterly compounding provides a higher future value.

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Giving the following information:

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4 years ago

3. Nghiep gave his mother half of his weekly earnings, and then spent half of what was left on a new shirt. He then had $32. Wha

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Answer:

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Explanation:

Given: Nghiep gave half of his weekly salary to his mother.

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Taking LCD as 2

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4 years ago

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