1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
N76 [4]
3 years ago
5

Javonte Co. set standards of 2 hours of direct labor per unit of product and $15.80 per hour for the labor rate. During October,

the company uses 12,100 hours of direct labor at a $193,600 total cost to produce 6,400 units of product. In November, the company uses 16,100 hours of direct labor at a $258,405 total cost to produce 6,800 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (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. (2) Javonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?
Business
1 answer:
IRISSAK [1]3 years ago
5 0

Answer:

October

direct labor rate variance =$2,420 unfavorable

direct labor efficiency variance  =$11,060 favorable

direct labor cost variance  = $ 8,640 favorable

<em>Investigate : direct labor efficiency variance</em>

November

direct labor rate variance = $4,025 unfavorable

direct labor efficiency variance =$ 39,500 favorable

direct labor cost variance  = $35,475 favorable

<em>Investigate : direct labor efficiency variance</em>

Explanation:

October

direct labor rate variance = (Aq × Ap) -  (Aq × Sp)

                                          = (12,100×$16) - (12,100×$15.80)

                                          =$2,420 unfavorable

direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)

                                                    =(12,100 × $15.80) - (6,400×2 ×$15.80)

                                                    =$11,060 favorable

direct labor cost variance = direct labor rate variance + direct labor efficiency variance  

                                           = $2,420 (A) + $11,060 (F)

                                           = $ 8,640 favorable

November

direct labor rate variance = (Aq × Ap) -  (Aq × Sp)

                                          = (16,100×$16.05) - (16,100×$15.80)

                                          = $4,025 unfavorable

direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)

                                                    =(16,100 × $15.80) - (6,800×2 ×$15.80)

                                                    =$ 39,500 favorable

direct labor cost variance = direct labor rate variance + direct labor efficiency variance

                                          = $4,025 (A) + $ 39,500 (F)

                                           = $35,475 favorable

You might be interested in
Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when
swat32

Answer:

Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that the average total cost when 5 units of output are produced is $60, and the marginal cost of the sixth unit of output is $120. What is the average total cost when six units are produced

4 0
2 years ago
A company is using a mobile device deployment model in which employees use their personal devices for work at their own discreti
Elis [28]

Answer:

no entiendo un carajoooooool

8 0
3 years ago
A firm is considering two different capital structures. The first option is an all-equity firm with 75,000 shares of stock. The
Contact [7]

Answer:

$395833

Explanation:

Calculation to determine How much money is the firm considering borrowing if the interest rate is 8 percent

Amount to borrowed=(95000 / 75000) = [95000 – (X * 0.08)] / 50000

Amount to borrowed=1.26 = [95000 – (X * 0.08)] / 50000

Amount to borrowed=63333.33 = 95000 – (X * 0.08)

Amount to borrowed=31666.65 = X * 0.08

Amount to borrowed=X=31666.65/0.08

Amount to borrowed=$395833.33

Therefore How much money is the firm considering borrowing if the interest rate is 8 percent will be $395833

6 0
2 years ago
When being interviewed, why is it important to not dwell on any weaknesses or negative information? Explain.
____ [38]

Answer: You shouldn't dwell on any negatives and weakness because you want to be truthful but also not show that you cant compose yourself and then it shows that your unable to service the job correctly.

Explanation:

8 0
3 years ago
Identify which of the following statements is false.
oksian1 [2.3K]

Answer: The correct answer is "D. A​ shareholder's S corporation stock basis will increase when the shareholder acts as guarantor on a corporate indebtedness.".

Explanation: The statement D. A​ shareholder's S corporation stock basis will increase when the shareholder acts as guarantor on a corporate indebtedness. is <u>FALSE</u> because a shareholder's S corporation stock basis does not increase when the shareholder acts as guarantor on a corporate indebtedness.

6 0
3 years ago
Other questions:
  • The ruhr valley is important to the economy of germany because it ____.
    6·1 answer
  • Who is responsible for applying skills, knowledge, and project management tools and techniques to project activities to successf
    15·1 answer
  • The deeds and actions of a producer indicate what kind of authority?
    8·1 answer
  • what countries represent the largest global business opportunities for the next decade? what factors determine the size of the o
    8·1 answer
  • New balance has many offerings. it makes the minimus line of shoes with a vibram outsole and revlite cushioning for those who wa
    9·2 answers
  • Mason Mills management works hard to ensure that nobody in its organization has more than one boss and all workers are treated w
    11·1 answer
  • How do you determine the acid-test ratio? The sum of cash and short-term investments divided by short-term debt. Current assets
    15·1 answer
  • What do you think is meant by the phrase "both alien and non-alien"?
    5·1 answer
  • Are social media videos a good way to market yourself to employers
    11·2 answers
  • Acme Manufacturing Company prepared a fixed budget based on the expected sales of 160,000 units. That fixed budget included vari
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!