The following data reflect the current month's activity for Sills, Inc.: Actual total direct labor $ 184,080 Actual hours worked 13,000 Standard...

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Accounting

The following data reflect the current month's activity forSills, Inc.:


  Actual total direct labor $ 184,080
  Actual hours worked 13,000
  Standard labor-hours allowed for actual output(flexible budget) 14,400
  Direct labor price variance $ 4,680 U
  Actual variable overhead $ 45,500
  Standard variable overhead rate per standard directlabor-hour $ 3.60

Variable overhead is applied based on standard directlabor-hours allowed.

Required:
Compute the labor and variable overhead price and efficiencyvariances. (Do not round your intermediatecalculations. Input all amounts as positivevalues. Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Omit the "$" sign in your response.)

Price Variance Efficiency Variance
  Direct labor $     (Click to select)FUNone $     (Click to select)NoneUF
  Variable overhead $     (Click to select)UNoneF $     (Click to select)UNoneF

Answer & Explanation Solved by verified expert

4.1 Ratings (628 Votes)

Ans 1 Calculation of Labor variance Actual labor hours rate 18408013000 1416 per hour Direct labor price variance Std rateXactual hours actual hours X actual rate 4680 Std labor See Answer

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Actual total direct labor	$	184,080
Actual hours worked		13,000
Standard labor-hours allowed for actual output(flexible budget)		14,400
Direct labor price variance	$	4,680	U
Actual variable overhead	$	45,500
Standard variable overhead rate per standard directlabor-hour	$	3.60

	Price Variance		Efficiency Variance
Direct labor	$	(Click to select)FUNone	$	(Click to select)NoneUF
Variable overhead	$	(Click to select)UNoneF	$	(Click to select)UNoneF