selling for $30 pert dition 10)The per-unit standards for direct labor are 1.75
ID: 2597449 • Letter: S
Question
selling for $30 pert dition 10)The per-unit standards for direct labor are 1.75 direct labor hours at $18 per hour. If in producing ,000 units, the actual direct labor cost was $90,000, the total direct labor variance is a. $5,000 U b. $4,500 F c $5,000F d. $4,500 U 11) Dram Inc's purchasing department variance report shows the company purchased 2,000 pounds of Material A and 1.400 pounds of Material B. The report also shows standard prices of $3 for Material A and $4 for Material B along with actual prices of $3.10 for Material A and $3.80 for Material B. Dram's total price variance is a. $80 F b. $40 F c. $40 U. d. $80 U 12). Within an organizational structure, the person most likely to be evaluated in terms of controllable costs would be: A. A payroll clerk B. A cost center manager. C. A production line worker D. A maintenance worker. E. All of the individuals would be evaluated in terms of controllable costs 13) Gurbram Inc. estimates its direct materials will cost $3 per pound for 300,000 units ($900,000 total direct materials costs). Gurbram's standard direct materials cost and budgeted direct materials cost are as follows b. c. d. Standard $3 per unit $3 per unit $900,000 per year $900,000 per year Budgeted $900,000 per year $3 per unit $3 per unit $900,000 per yearExplanation / Answer
Solution :
Standard Labour Cost = Standard labour hours per unit * No. of units produced * Standard rate per hour
= 1.75 * 3000 * $18
= $94500
Actual Labour Cost = $90000
Total Direct Labour Variance = Standard Labour Cost - Actual Labour Cost
= $94500 - $90000
= $4500 (F)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.