Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions: 4. Labor efficiency variance: 5. Labor Rate variance: 6. Total Direct labor spending variance: 7. Variable overhead efficiency variance: 8. Variable overhead rate variance
Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions: 4. Labor efficiency variance: 5. Labor Rate variance: 6. Total Direct labor spending variance: 7. Variable overhead efficiency variance: 8. Variable overhead rate variance
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 29BEB: Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and...
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Question
Standard DM price per pound (Lbs): $20
Standard DM needed per unit: 2 Lbs
Standard DL rate: $15 per hour
Standard DL hours per unit: 2 hours of Direct Labor per unit
*The actual DM used for 11000 units of production is 24200 lbs which means:
24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit
Actual DL hours: 20000 hours
Variable
*Note: I am helping you here!
- AQ (AP-SP) = DM Price Variance
- (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM)
- $442,000 - (24200 x $20) = DM Price Variance
- 442,000 - 484,000 = DM Price Variance
- $42,000 Favorable DM Price Variance
please answer the following questions:
4. Labor efficiency variance:
5. Labor Rate variance:
6. Total Direct labor spending variance:
7. Variable overhead efficiency variance:
8. Variable overhead rate variance
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