Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. waterway family instruments makes cellos. during t

Waterway Family Instruments makes cellos. During the past year, the company made 6,380 cellos even though...

Free

80.2K

Verified Solution

Question

Accounting

Waterway Family Instruments makes cellos. During the past year,the company made 6,380 cellos even though the budget planned foronly 5,580. The company paid its workers an average of $15 perhour, which was $1 higher than the standard labor rate. Theproduction manager budgets four direct labor hours per cello.During the year, a total of 24,790 direct labor hours wereworked.

(a) Calculate the direct labor rate and efficiencyvariances. (If variance is zero, select "NotApplicable" and enter 0 for the amounts.)

Direct labor rate variance$Enter a dollar amountSelect an option                                                     UnfavorableNot ApplicableFavorable
Direct labor efficiency variance$Enter a dollar amountSelect an option                                                     FavorableUnfavorableNot Applicable

Answer & Explanation Solved by verified expert
3.6 Ratings (498 Votes)

Solution

Direct labor rate variance $ 24,790 Unfavorable
Direct labor efficiency variance $ 10,220 Favorable

Working

Labor Rate Variance
( Standard Rate - Actual Rate ) x Actual Labor Hours
( $                  14.00 - $                   15.00 ) x 24790
-24790
Variance $           24,790.00 Unfavourable-U
Labour Efficiency Variance
( Standard Hours - Actual Hours ) x Standard Rate
( 25520 - 24790 ) x $           14.00
10220
Variance $           10,220.00 Favourable-F

.

Standard DATA for 6380 Units
Quantity (SQ) Rate (SR) Standard Cost
[A] [B] [A x B]
Direct labor ( 4 Hour x 6380 Units)=25520 Hour $                14.00 $          357,280.00

.

Actual DATA for 6380 Units
Quantity (AQ) Rate (AR) Actual Cost
Direct labor 24790 $         15.00 $       371,850.00

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Geometry
1.2K views

The radius of a circle is 6 ft Answer the parts below Make sure that...

Biology
1.2K views

ns tha photosynthesiz perform cellular respiration A do not need to B are unable to...

Biology
1.2K views

1 Define aggregate demand and identify its four sources

Geometry
1.2K views

Lesson 6 2 Homework 1 Write whether the triangles below are congruent by ASA AAS...

Basic Math
1.2K views

6. A football player attempts to kick a football over a goal post. The path...

Calculus
1.2K views

8 1 8e x 1 8e x dx

Algebra
1.2K views

In a class of 7 there are 5 students who forgot their lunch If the...

Accounting
1.2K views

#27 Please classify the following cost: advertising expenses, by choosing one...

Accounting
1.2K views

The following information is from Tejas WindowTint's financial records.

Accounting
1.2K views

On July 1, 2021, Sheridan Satellites Corporation issued $1,400,000 of 10 -year, 7% bonds to...

Finance
1.2K views

The vector 12v1 is a linear combination of the vectors v1 and v2. True...

Finance
1.2K views

Lets take a look at how New Jersey deals with the various aspects of the...