HomeworkLib
Question
help
The Fime Corporation uses a standard costing system. The following data have been assembled for December: Actual direct labor
Piper Corporations standards call for 4,125 direct labor-hours to produce 1,650 units of product. During October the company
business   accounting   
1 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1)Correct option is "C"-5400 hours

Labor efficiency variance =SR [AH-SH]

     2400 = 8 [5700 - SH]

   2400/8 = [5700-SH]

   300 = 5700 -SH

SH = 5700 -300

          = 5400 Hours

Standard hours allowed= 5400

2)Correct option is "C" -- 2875 labor hours

To produce one unit ,Standard hours allowed per unit = 4125 /1650 =2.5 hours per unit

Total standard hours allowed for actual output = Actual units produced* standard hours per unit

                                 = 1150 *2.5

                                 = 2875 h ours

3)correct option is "A"-54375

Labor efficiency variance =SR [AH-SH]

6000 = 16 [AH - (1800*30)]

6000/16 = [AH- 54000]

375 = AH - 54000

AH = 54000+375

       = 54375 Hours

0 0
Add a comment
Know the answer?
Add Answer to:
help The Fime Corporation uses a standard costing system. The following data have been assembled for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The Fime Corporation uses a standard costing system. The following data have been assembled for December...

    The Fime Corporation uses a standard costing system. The following data have been assembled for December Actual direct labor-hours worked Standard direct labor rate Labor efficiency variance 6,400 hours $ 10 per hour $1.500 Unfavorable The standard hours allowed for December's production is Multiple Choice Ο 6580 hours Ο Ο 6.400 hours Ο Ο 6250 hours Ο

  • Bovar Company began the manufacture of new paging machines. The company installed a standard costing system...

    Bovar Company began the manufacture of new paging machines. The company installed a standard costing system to account for manufacturing costs. The standard cost per unit is:               Direct materials   3 pound @ $5 per pound               Direct labor         .5 hours @ $20 per direct labor hour               Variable overhead       75% of direct labor cost Actual production was 4,000 units; actual sales were 2,500 units. There is no beginning inventory for direct materials. Other data are: Materials price variance is...

  • The following data reflect the current month’s activity for Vickers Corporation. Actual total direct labor $...

    The following data reflect the current month’s activity for Vickers Corporation. Actual total direct labor $ 639,115 Actual hours worked 36,500 Standard labor-hours allowed for actual output (flexible budget) 35,300 Direct labor price variance $ 17,885 F Actual variable overhead $ 159,400 Standard variable overhead rate per standard direct labor-hour $ 4.40 Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. (Indicate the effect of each variance by...

  • The following data reflect the current month's activity for Vickers Corporation. Actual total direct labor Actual...

    The following data reflect the current month's activity for Vickers Corporation. Actual total direct labor Actual hours worked Standard labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour $671,460 38,000 36,900 $ 12,540 F $154,500 $ 4.10 Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. (Indicate the effect of each variance by selecting "F"...

  • A company uses a standard costing system. At the end of the current year, the company...

    A company uses a standard costing system. At the end of the current year, the company provides the following overhead information: Actual overhead incurred:Variable $90,000 Fixed 62,000 Budgeted fixed overhead 65,000Variable overhead rate (per direct labor hour) 8 Standard hours allowed for actual production) 12,000 Actual labor hours used 11,000   What amount is the variable overhead efficiency variance? a)$8,000 favorable b)$8,000 unfavorable c)$6,000 favorable d)$2,000 unfavorable

  • Se The following data reflect the current month's activity for Vickers Corporation. Actual total direct labor...

    Se The following data reflect the current month's activity for Vickers Corporation. Actual total direct labor Actual hours worked Standard labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour $642,400 36,500 35,200 $ 14,600 F $159,200 $ 4.40 Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances, (Indicate the effect of each favorable, or "U"...

  • Krizum Industries makes heavy construction equipment. The standard for a particular Crane calls for 27 direct...

    Krizum Industries makes heavy construction equipment. The standard for a particular Crane calls for 27 direct labor-hours at $15 per direct labor-hour During a recent period 1.650 cranes were made the labor rate variance was zero and the labor efficiency variance was $5.700 unfavorable How many actual direct labor hours were worked? O 50.250 44,550 O 44.930 42.900

  • The following data reflect the current month’s activity for Vickers Corporation. Actual total direct labor $...

    The following data reflect the current month’s activity for Vickers Corporation. Actual total direct labor $ 688,940 Actual hours worked 37,000 Standard labor-hours allowed for actual output (flexible budget) 35,600 Direct labor price variance $ 14,060 F Actual variable overhead $ 165,200 Standard variable overhead rate per standard direct labor-hour $ 4.50 Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. (Indicate the effect of each variance by...

  • Somalian Corporation uses a standard costing system. Information for the month of May is as follows:...

    Somalian Corporation uses a standard costing system. Information for the month of May is as follows: Actual manufacturing overhead costs($26,000 is fixed) $80,000 Direct labor: Actual hours worked 12,000 hrs. Standard hours allowed for actual production 10,000 hrs. Average actual labor cost per hour $18 The factory overhead rate is based on a normal volume of 12,000 direct labor hours. Standard cost data at 12,000 direct labor hours were as follows: Variable factory overhead $48,000 Fixed factory overhead $24,000 Total...

  • 1. Colina Production Company uses a standard costing system. The following information pertains to the current...

    1. Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor hours is the driver used to assign overhead costs to products. Actual production 5,500 units Actual factory overhead costs ($16,500 is fixed) $40,125 Actual direct labor costs (11,250 hours) $131,625 Standard direct labor for 5,500 units: Standard hours allowed 11,000 hours Labor rate $12.00 The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT