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3 years ago

DL variances

Business

1 answer:

diamong [38]3 years ago

3 0

Answer:

Logen Construction

a. Standard hours for July Production = 3,350

b. Actual hourly wage rate = $18.25

c. Direct labor variances:

i. Labor Rate Variance = $827.50 U

ii. Labor Efficiency Variance = $720 F

iii. Total Labor Variance = $107.50 U

Explanation:

a) Data and Calculations:

Direct labor hours per frame = 5 hours

Standard hourly labor rate = $18

Standard direct labor cost per frame = $90 ($18 * 5)

Number of frames produced in July = 670

Actual direct labor hours = 3,310

Actual wages earned by workers = $60,407.50

a. Standard hours for July Production = Actual production unit multiplied by standard hours per unit

= 3,350 (670 * 5) hours

b. Actual hourly wage rate = Actual direct labor cost divided by actual direct labor hours

= $18.25 ($60,407.50/3,310)

c. Direct labor variances:

i. Labor Rate Variance = Standard direct labor rate - Actual direct labor rate * Actual direct labor hours

= $827.50 U ($18 - $18.25) * 3,310

ii. Labor Efficiency Variance = Standard direct labor hours - Actual direct labor hours * Standard Direct Labor Rate

= $720 F (3,350 - 3,310) * $18

iii. Total Labor Variance = Standard Direct Labor Cost - Actual Direct Labor Cost

= $107.50 U ($60,300 - $60,407.50)

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Answer:

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solution

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4 years ago

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Answer:

Required 1

Part a

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Fixed manufacturing costs = $32,500 ÷ 1,000 units = $32.50

therefore,

Total Product cost = $147.50 + $32.50 = $180.00

Part b

Total period cost = variable non- manufacturing costs + fixed non-manufacturing costs

where,

variable non- manufacturing costs = $15,000 + $5,500 = $20,500

fixed non-manufacturing costs = $24,000 + $28,000 = $52,000

therefore,

Total period cost = $20,500 + $52,000 = $72,500

Required 2

Part a

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therefore,

total direct manufacturing cost = $84,000 + $42,500 + $21,000 = $147,500

Part b

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total indirect manufacturing cost = $32,500

Required 3

Part a

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therefore,

total manufacturing cost = $84,000 + $42,500 + $21,000 + $32,500 = $180,000

Part b

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therefore,

total non-manufacturing cost = $20,500 + $52,000 = $72,500

Part c

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therefore,

total conversion cost = $42,500 + $21,000 + $32,500 = $96,000

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therefore,

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3 years ago

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Marta_Voda [28]

Full question:

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Peter's approach is based on value cocreation.

<h3>Explanation:</h3>

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In the example given, The colleague of Christie, Peter is being working closely with the clients and he offers the services by asking the customer's ideas and their suggestions. Thus the approach followed by Peter is value cocreation.

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