For each of the following independent cases, fill in the missing amounts: (Indic

Question

For each of the following independent cases, fill in the missing amounts: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable. Round your per unit rates to 2 decimal places.) Kevin, 1,500 Units produced Standard hours per unit Standard hours Standard rate per hour Actual hours worked Actual labor cost Direct labor rate variance Direct labor efficiency variance 2,000 3.50 7,000 120 3.00 300 S 10.50 0.90 900 S 7.00 4,900 S 31,850 S 14.50 6,800 975 5 3,090 S 1,700 F 975 F S 50 U s 765 U 2,800 U Hints References Book & Resources Hint #1

Explanation / Answer

for caesy and company

Direct labour rate variance = Actual Quantity x Actual Rate - Actual Quantity x Standard Rate

so,

taking actual rate as "x"

$1700= 6800*x- 6800*$14.5

therefore actual rate = $14.5 per hour

actual labor cost = 6800 * 14.5 = $98600

labor efficiency variance = (Actual hours worked × Standard rate) – (Standard hours allowed × Standard rate)

= 6800*14.5 - 7000*14.5 = ($2900) favourable

In kevin inc

direct labor efficency variance = (Actual hours worked × Standard rate) – (Standard hours allowed × Standard rate)

so taking standard rate as "x"

765= 975*x - 900 *x

765= 75x

x = $10.2 = standard rate per hour

labor rate variance

taking actual rate as "y"

975= 975*y - 975 *10.2

y = $11.2

so actual labor cost = 975*11.2 = $10920

Jess company

direct labor variance

taking actual hours as "h"

$150= 3090- h*10.5

on solving h= 280 hours actual worked

direct efficency variance

=280*10.5-300*10.5

= ($210) favourable

valerie ,inc

direct labor rate variance

= 4900*6.5 - 4900*7

= $2450 favourable

direct efficency variance

taking standard hours worked as "x"

2800= 4900*7- x*7

x= 4500 hours

now standard hours per unit =

4500/7 = 642.86 hours

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