1) CK Venkat Chemicals releases the following data related to direct labor costs
ID: 2496829 • Letter: 1
Question
1) CK Venkat Chemicals releases the following data related to direct labor costs for February:
Actual costs
7,700 hours at $13
Standard costs
7,000 hours at $9
Calculate the direct labor time variance?
a.
$9,100 favorable
b.
$9,100 unfavorable
c.
$6,300 unfavorable
d.
$6,300 favorable
2) CK Venkat Chemicals releases the following data relate to direct labor costs for February:
Actual costs
7,700 hours at $13
Standard costs
7,000 hours at $9
Calculate the direct labor rate variance?
a.
$28,000 favorable
b.
$28,000 unfavorable
c.
$30,800 favorable
d.
$30,800 unfavorable
3) The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:
Standard Costs
Fixed overhead (based on 10,000 hours)
3 hours @ $.80 per hour
Variable overhead
3 hours @ $2 per hour
Actual Costs
Total variable cost, $18,000
Total fixed cost, $8,000
The amount of the factory overhead volume variance is:
a.
$2,000 favorable
b.
$2,000 unfavorable
c.
$2,500 unfavorable
d.
$0
4) The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:
Standard Costs
Fixed overhead (based on 10,000 hours)
3 hours @ $.80 per hour
Variable overhead
3 hours @ $2 per hour
Actual Costs
Total variable cost, $18,000
Total fixed cost, $8,000
The amount of the total factory overhead cost variance is:
a.
$2,000 favorable
b.
$5,000 unfavorable
c.
$2,500 unfavorable
d.
$0
Actual costs
7,700 hours at $13
Standard costs
7,000 hours at $9
Explanation / Answer
1)Labor time variance = SR(AH -SH)
= 9 ( 7700- 7000)
= 9 *700
= 6300 (U)
COrrect option is "C"
2)Labor rate variance = AH (AR -SR)
= 7700 ( 13-9)
= 7700 * 4
= 30800 (U)
Correct option is "D"
3)Budgeted fixed overhead = 10000 *.8 = 8000
Standard fixed overhead for actual output = 2500 * 3 = 7500 *.8 = 6000
Volume variance = standard overhead - BUdgeted overhead
= 6000 - 8000
= -2000 (F)
correct option is "A"
4)correct option is "B - 5000U
Actual overhead = 18000 +8 000 = 26000
Budgeted overhead = (2500*3 *.8) Fixed + (2500 *3*2 )variable
= 6000 + 15000
= 21000
Total variance = actual -Standard overhead
= 26000 - 21000
= 5000 (U)
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