Calculate the Total Direct Labor Variance using the above information $2,051, 25

Question

Calculate the Total Direct Labor Variance using the above information $2,051, 25 Favorable $2,051, 25 Unfavorable $2,362,50 Unfavorable $2,362,50 Favorable Calculate the Direct Labor Time Variance using the above information $2,362,50 Favorable $2,362,50 Unfavorable $6,540,00 Favorable $6,540,00 Unfavorable Calculate the Direct Labor Rate Variance the above information $4,488,75 Unfavorable $6,851, 25 Favorable $4,488,75 Favorable $6,851,125 Unfavorable Which of the following is not a reason for a direct materials quantity variance? Malfunctioning equipment Purchasing of inferior raw materials Increased material cost per unit Spoilage of materials

Explanation / Answer

8. The correct answer is a. $ 2,051.25 Favorable

Total Direct Labor Variance = Standard labor cost - Actual labor cost = ( $ 12 x 18,500 ) - ( $ 12.25 x 17,955) = $ 222,000 - $ 219,948.75 = $ 2,051.25 Favorable

9. The correct option is c. $ 6,540 Favorable

Direct labor time variance = ( Standard hours for actual output - Actual hours worked ) x Standard hourly rate = ( 18,500 x 17,955) x $ 12 = $ 6,540 Favorable

10. The correct option is a. $ 4,488.75 Unfavorable

Direct labor rate variance = ( Standard rate per hour - Actual rate per hour ) x Actual hours worked = ( $ 12 - $ 12.25 ) x 17,955 = $ 4,488.75 Unfavorable

11. The correct option is c. Increased material cost per unit

Direct materials quantity variance = ( Standard quantity for actual output - Actual quantity used ) x Standard price of materials per unit.

As actual material cost per unit is not part of the computation as aforementioned, increased materials cost per unit is not a reason for direct materials quantity variance.

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