ClassOf1 Standard Costing Labor Variances 14 | Labour Economics | Homework

Sub: Accounts

Topic: Standard Costing

Question:
Scheer Company's standard labor cost of producing one unit of product DD is 4 hours at the rate of $14.16 per hour. During August, 40,800 hours of labor are incurred at a cost of $14.28 per hour to produce 10,000 units of product DD.
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Compute the total labor variance. $ Compute the labor price and quantity variances. Labor Price Variance $

Labor Quantity Variance $ Repeat the previous question, assuming the standard is 4.2 hours of direct labor at $14.46 per hour. Labor Price Variance $ Labor Quantity variance $

Solution:

Actual Labor hours Spent During August Actual Labor Hourly Rate Standard Labor Hourly Rate Labor rate variance =

40800 AH 14.28 AR 14.16 SR 4896 Un Favorable

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Sub: Accounts

Topic: Standard Costing

AH*( AR-SR) Standard Labor Hours Per Unit Of Product 4 Standard Labor hours allowed Per Actual Production 10000*4 40000 SH Actual Labor hours Spent During August 40800 AH Standard Labor Hourly Rate 14.16 SR Labor Efficiency Variance = SR* (AHSH) 11328 Un Favorable Total Labor variance = ( Labor rate Variance + Labor Efficiency Variance) 16224 Un Favorable. Answ Total Labor variance = ( Labor rate Variance + Labor ers Efficiency Variance) 16224 Un Favorable. Labor Price variance 4896 Un Favorable. Labor quantity Variance 11328 Un Favorable Repeat the Previous Question, assuming 4.2 Hours standard labor hours per units of Product ,at $14.46 Per Hour. Actual Labor hours Spent During August 40800 AH Actual Labor Hourly Rate 14.28 AR Standard Labor Hourly Rate 14.46 SR Labor rate variance = AH*( ARSR) -7344 Favorable Standard Labor Hours Per Unit Of Product 4.2 1000 Standard Labor hours allowed Per Actual Production 0*4.2 42000 SH Actual Labor hours Spent During August 40800 AH Standard Labor Hourly Rate 14.46 Labor Efficiency Variance = SR* (AH-SH) -17352 Favorable Total Labor variance = ( Labor rate Variance + Labor Efficiency Variance) -24696 Favorable Answ Total Labor variance = ( Labor rate Variance + Labor Efficiency 24696 Favorable
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*The Homework solutions from ClassOf1 are intended to help the student understand the approach to solving the problem and not for submitting the same in lieu of your academic submissions for grades.

Sub: Accounts

Topic: Standard Costing

ers

Variance) Labor Price variance Labor quantity Variance

7344 Favorable 17352 Favorable

** End of the Solution **

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*The Homework solutions from ClassOf1 are intended to help the student understand the approach to solving the problem and not for submitting the same in lieu of your academic submissions for grades.

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