Fill in the missing figures for each of the following independent cases: (Round
ID: 2474925 • Letter: F
Question
Fill in the missing figures for each of the following independent cases: (Round all rates to the nearest cent and all totals to the nearest dollar.) Use "F" and "U" to designate favorable and unfavorable variances. Enter all amounts as positive numbers.
Case 1 Case 2 Standard production 1,200 ____ Standard hours per unit 2 .6 Standard hours allowed _____ 1,200 Standard rate per hour $15 $ ____ Actual hours used 2,340 1,220 Actual labor cost $ ____ $ ___ Labor rate variance $725 U $290 U Labor efficiency variance $ ___ $400 UExplanation / Answer
Case 1
Labour rate variance = 725 U
(actaul labour rate - standard labour rate) x actual hours used = 725
actual labour cost - standard labour rate x actual hours used= 725
Actual Labour cost - $15/hour x 2340 hours = 725
Actual labour cost = $35100 + $725 = $35825
Labour efficiency variance
= (Actual hours worked - standard hours allowed) x standard labour rate
= (2340 - 2400) x $15 = $900 F
Case 2
labour efficiency variance
= (actual hours used - standard hours allowed) x Standard rate
= (1220 - 1200) x SR
By question,
(1220 - 1200) x SR = 400
SR = 400 / 20 = $20 / hour
Labour rate variance = 290 U
(actaul labour rate - standard labour rate) x actual hours used = 290
actual labour cost - standard labour rate x actual hours used= 290
Actual Labour cost - $20/hour x 1220 hours = 290
Actual labour cost = $24400 + $290 = $24690
Particulars Case 1 case 2 Standard production (units) 1,200 200 Standard hours per unit 2 6 standard hours allowed 2,400 1,200 standard rate per hour $15.00 $20.00 actual hours used 2,340 1,220 actual labour cost $ 35,825.00 $ 24,690.00 labour rate variance $725 U $290 U labour efficiency variance $900 F $400 URelated Questions
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