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elena-14-01-66 [18.8K]
3 years ago
12

The following labor standards have been established for a particular product:Standard labor hours per unit of output 4.4 hoursSt

andard labor rate $ 20.20 per hourThe following data pertain to operations concerning the product for the last month:Actual hours worked 7,000 hoursActual total labor cost $ 142,100Actual output 1,500 unitsRequired:a. What is the labor rate variance for the month?b. What is the labor efficiency variance for the month?
Business
1 answer:
Effectus [21]3 years ago
8 0

Answer:

Direct labor rate variance= $700 unfavorable

Direct labor time (efficiency) variance= $8,080 unfavorable

Explanation:

Giving the following information:

Standard labor hours per unit of output 4.4 hours

Standard labor rate $20.20 per hour

Actual hours worked 7,000 hours

Actual total labor cost $142,100

Actual output of 1,500 units

To calculate the direct labor rate and efficiency variance, we need to use the following formulas:

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

Actual rate= 142,100/7,000= $20.3

Direct labor rate variance= (20.2 - 20.3)*7,000

Direct labor rate variance= $700 unfavorable

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

Standard quantity= 1,500*4.4= 6,600

Direct labor time (efficiency) variance= (6,600 - 7,000)*20.2

Direct labor time (efficiency) variance= $8,080 unfavorable

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The price of the bond is $100.

The bond's price is the present value of the face value plus the present value of the interest accrued throughout the bond's term.

The coupon interest rate is 5% of 100, that is $5 per year. The yield to maturity is also 5%. Because the coupon rate is equal to the yield, the bond's present value will only be its face value.

Present value = 5(P/A, 5%, 2) + 100(P/F, 5%, 2)

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3 years ago
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Answer:

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3 years ago
At December 31, Gill Co. reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit) b
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Answer: $7,740

Explanation:

Given, At December 31, Accounts receivable = $238,000

Allowance for uncollectible accounts = 3% of (accounts receivable)

∴ Allowance for uncollectible accounts = 3% of ($238,000 )

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Allowance for uncollectible accounts (credit) before any adjustments= $600

The amount of the adjustment for uncollectible accounts = Allowance for uncollectible accounts +  $600

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= $7,740

Hence, The amount of the adjustment for uncollectible accounts would be: <u>$7,740.</u>

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3 years ago
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