If the labor quantity variance is unfavorable and the cause is inefficient use of direct labor,...
If the labor quantity variance is unfavorable and the cause is inefficient use of direct labor, the responsibility rests with the
controller's department.
sales department.
production department.
budget office.
Homework Answers
Answer: Production Department
Production Department is Responsible for the Poor Utilization of Direct Labor, That leads to the Unfavorable Direct Labor Quantity Variance. If the Production Department Employe the more labor hours than the Standard, we will get the unfavorable Direct labor quantity Variance.
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If the labor quantity variance is unfavorable and the cause is
inefficient use of direct labor,...
1) What does an unfavorable materials quantity variance mean? What could be the cause of such...
1) What does an unfavorable materials quantity variance mean? What could be the cause of such a variance? 2) What does an unfavorable labor efficiency variance mean? What could be the cause of such a variance?
Explanation not necessary When is the direct labor time variance favorable? A. when the actual quantity used is les...
Explanation not necessary When is the direct labor time variance favorable? A. when the actual quantity used is less than the standard quantity B. when the actual quantity used is greater than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price A flexible budget A. gives actual figures for selling price B. gives actual figures for variable and fixed overhead C. is not...
What is the direct labor rate variance? 50 unfavorable 125 unfavorable 125 favorable The following information...
What is the direct labor rate variance? 50 unfavorable 125 unfavorable 125 favorable The following information for Q 7-8 The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% normal production capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was S3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,800 units. 7. The variable factory...
Direct Labor: Quantity, 0.26 hour Rate, $13.00 per hour Direct Material: Quantity, 5 kilograms Price, $0.62...
Direct Labor: Quantity, 0.26 hour Rate, $13.00 per hour Direct Material: Quantity, 5 kilograms Price, $0.62 per kilogram Actual material purchases amounted to 243,600 kilograms at $0.650 per kilogram. Actual costs incurred in the production of 42,000 units were as follows: Direct labor: Direct material: $160,776 for 12,180 hours $141,960 for 218,400 kilograms Required: 1. Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate...
Actual direct manufacturing labor wage rate 4. Standard quantity of direct materials allowed (in pounds) 5....
Actual direct manufacturing labor wage rate 4. Standard quantity of direct materials allowed (in pounds) 5. Actual quantity of direct materials used (in pounds) 6. Actual quantity of direct materials purchased in pounds) 7. Actual direct materials price per pound Req in nvene 7-37 Comprehensive variance analysis review. Blaumvogel is a single-product company that produces and sells product P. For the year 2014, the following budgeted absorption costing manufacturing costs per product are: Oprating Material Variable costs Fixed costs 2...
The Two Components of the direct labor flexible budget variance are the: a. the direct labor...
The Two Components of the direct labor flexible budget variance are the: a. the direct labor price variance and the direct labor quantity variance. b. the direct labor rate variance and the direct labor efficiency variance. c. the direct labor rate variance and the direct labor standard variance. d. the direct labor efficiency variance and the direct labor standard variance. (The answer is not C.)
An unfavorable direct labor rate variance is recorded as a debit. True False
An unfavorable direct labor rate variance is recorded as a debit. True False
Which of the following will result in an unfavorable direct labor PRICE variance? when actual direct...
Which of the following will result in an unfavorable direct labor PRICE variance? when actual direct labor hours exceed standard direct labor hours when actual direct labor hours are less than standard direct labor hours when the actual direct labor rate exceeds the standard direct labor rate when the actual direct labor rate is less than the standard direct labor rate
Direct Materials and Direct Labor Variance Analysis Abbeville Company manufactures faucets in a small manufacturing facility....
Direct Materials and Direct Labor Variance Analysis Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $10.80 Standard labor time per faucet 10 min. Standard number of lb. of brass 1.60 lb. Standard price per lb. of brass $9.25 Actual price per lb. of brass $9.50 Actual lb....
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small manufacturing...
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 30 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows: Standard wage per hour $15 Standard labor time per unit 15 min 4 1.6 lbs Standard number of Ibs. of brass $12.25 Standard price per lb. of brass Actual price per lb. of brass 512.5...
Explanation not necessary When is the direct labor time variance favorable? A. when the actual quantity used is less than the standard quantity B. when the actual quantity used is greater than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price A flexible budget A. gives actual figures for selling price B. gives actual figures for variable and fixed overhead C. is not...
What is the direct labor rate variance? 50 unfavorable 125 unfavorable 125 favorable The following information for Q 7-8 The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% normal production capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was S3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,800 units. 7. The variable factory...
Direct Labor: Quantity, 0.26 hour Rate, $13.00 per hour Direct Material: Quantity, 5 kilograms Price, $0.62 per kilogram Actual material purchases amounted to 243,600 kilograms at $0.650 per kilogram. Actual costs incurred in the production of 42,000 units were as follows: Direct labor: Direct material: $160,776 for 12,180 hours $141,960 for 218,400 kilograms Required: 1. Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate...
Actual direct manufacturing labor wage rate 4. Standard quantity of direct materials allowed (in pounds) 5. Actual quantity of direct materials used (in pounds) 6. Actual quantity of direct materials purchased in pounds) 7. Actual direct materials price per pound Req in nvene 7-37 Comprehensive variance analysis review. Blaumvogel is a single-product company that produces and sells product P. For the year 2014, the following budgeted absorption costing manufacturing costs per product are: Oprating Material Variable costs Fixed costs 2...
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 30 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows: Standard wage per hour $15 Standard labor time per unit 15 min 4 1.6 lbs Standard number of Ibs. of brass $12.25 Standard price per lb. of brass Actual price per lb. of brass 512.5...
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