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USPshnik [31]
3 years ago
7

After evaluating Null Company’s manufacturing process, management decides to establish standards of 2 hours of direct labor per

unit of product and $15.50 per hour for the labor rate. During October, the company uses 11,500 hours of direct labor at a $180,550 total cost to produce 6,100 units of product. In November, the company uses 22,500 hours of direct labor at a $355,500 total cost to produce 6,500 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (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:
dolphi86 [110]3 years ago
4 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

After evaluating Null Company’s manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $15.50 per hour for the labor rate. During October, the company uses 11,500 hours of direct labor at a $180,550 total cost to produce 6,100 units of product. In November, the company uses 22,500 hours of direct labor at a $355,500 total cost to produce 6,500 units of product.

October:

Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= (12,200 - 11,500)*15.50= 10,850 favorable

Direct labor price variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor price variance= (15.5 - 15.7)*11,500= 2,300 unfavorable

Total variation= 10,850 - 2,300= 8,550 favorable

November:

Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= (13,000 - 22,500)*15.5= 147,250 unfavorable

Direct labor price variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor price variance= (15.5 - 15.8)*22,500= 6,750

Total variation= 154,000 unfavorable

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m_a_m_a [10]

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. Is an opinion what contains the image. Judge it like it is.

4 0
3 years ago
In the​ past, Peter​ Kelle's tire dealership in Baton Rouge sold an average of 1 comma 000 radials each year. In the past 2​ yea
Lina20 [59]

Answer:

Explanation:

For computing the demand for each sale, first we have to compute the average sale for each season which is show below:

Average sale in fall = (240 + 260) ÷ 2 = 250

Average sale in winter = (340 + 300)  ÷ 2 = 320

Average sale in spring = (140 + 160)  ÷ 2 = 150

Average sale in summer = (320 + 240) ÷ 2 = 280

Demand for next fall = (250  ÷ 1,000) × 1,200 = 300

Demand for next winter = (320  ÷ 1,000) × 1,200 = 384

Demand for next spring = (150  ÷ 1,000) × 1,200 = 180

Demand for next summer = 1,200 - (300+384+180) = 336

6 0
3 years ago
Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct l
GarryVolchara [31]

Answer:

$4,089 Unfavorable

Explanation:

Data provided

Standard variable rate = $9.20

Direct labor hours = 1,160

Variable manufacturing overhead costs = $14,761

The computation of variable overhead rate variance is shown below:-

Variable overhead rate variance = (Standard variable rate - (Variable manufacturing overhead costs ÷ Direct labor hours)) × Direct labor hours

= ($9.20 - ($14,761 ÷ 1,160) × 1,160

= ($9.20 - $12.725) × 1160

= $4,089 Unfavorable

Therefore for computing the variable overhead rate variance we simply applied the above formula.

7 0
3 years ago
Investors choose international diversification because:
Stells [14]

Answer: I found the correct and complete question:

Which of the following statements is most CORRECT with respect to international diversification?

a) the gains from diversification may be diminished due to combined correlations accompanied by volatility in world markets. b) world markets always seem to be most uncorrelated when volatility is present. c) world markets have displayed relatively low and fixed correlations over the last five years. d) global diversification produces gain even when world markets have correlations value near one.

Explanation: The correct answer is "a) the gains from diversification may be diminished due to combined correlations accompanied by volatility in world markets.".

Global markets are generally in different phases and many of them are part of weak economies that therefore have a high degree of volatility and some are correlated so that a loss in one of these markets can lead to a loss in another and earnings can be diminished.

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3 years ago
Which statement best describes a recession?
jekas [21]

Answer:

D. A large number of people are unemployed and have decreased spending power.

3 0
3 years ago
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