Direct Labor Variances Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800...
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Direct Labor Variances Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct labor hours at an actual rate of $16.50 per hour. The Sewing Department used 19,600 direct labor hours at an actual rate of $19.25 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $18.00. The standard labor time for the Cutting and Sewing departments is 0.3 hour and 0.5 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Cutting Department Sewing Department Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance $ b. The two departments have opposite results. The Cutting Department has a(n) time variance, resulting in a total Department has a(n) cost variance. rate variance but has a(n) rate variance and a(n) cost variance. In contrast, the Sewing time variance, resulting in a total Direct Labor Variances Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct labor hours at an actual rate of $16.50 per hour. The Sewing Department used 19,600 direct labor hours at an actual rate of $19.25 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $18.00. The standard labor time for the Cutting and Sewing departments is 0.3 hour and 0.5 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Cutting Department Sewing Department Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance $ b. The two departments have opposite results. The Cutting Department has a(n) time variance, resulting in a total Department has a(n) cost variance. rate variance but has a(n) rate variance and a(n) cost variance. In contrast, the Sewing time variance, resulting in a total
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Related Book For
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
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