Direct Labor Variances Ada Clothes Company produced 15,000 units during April. The Cutting Department used 2,900...
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Direct Labor Variances Ada Clothes Company produced 15,000 units during April. The Cutting Department used 2,900 direct labor hours at an actual rate of $11.60 per hour. The Sewing Department used 4,800 direct labor hours at an actual rate of $11.30 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 $11.50. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 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. Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance Cutting Department Sewing Department Unfavorable $ Favorable Favorable $ Favorable Unfavorable Unfavorable rate variance b. The two departments have opposite results. The Cutting Department has a(n) unfavorable and a(n) favorable time variance, resulting in a total favorable cost variance. In contrast, the Sewing Department has a(n) favorable rate variance but has a(n) unfavorable time variance, resulting in a total unfavorable cost variance. Direct Labor Variances Ada Clothes Company produced 15,000 units during April. The Cutting Department used 2,900 direct labor hours at an actual rate of $11.60 per hour. The Sewing Department used 4,800 direct labor hours at an actual rate of $11.30 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 $11.50. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 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. Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance Cutting Department Sewing Department Unfavorable $ Favorable Favorable $ Favorable Unfavorable Unfavorable rate variance b. The two departments have opposite results. The Cutting Department has a(n) unfavorable and a(n) favorable time variance, resulting in a total favorable cost variance. In contrast, the Sewing Department has a(n) favorable rate variance but has a(n) unfavorable time variance, resulting in a total unfavorable cost variance.
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