Unformatted text preview: budget data are not journalized in cost accounting systems. In contrast, standard costs may be incorporated into cost accounting systems. Also, a company may report its inventories at standard cost in its financial statements, but it would not report inventories at budgeted costs. 11. In the direct labor variance matrix, there are three factors: (1) Actual hour’s * Actual rate, (2) Actual hour’s * Standard rate, (3) Standard hour’s *Standard rate. Using the numbers, indicate the formulas for each of the direct labor variances. There are 2 direct labor variances  rate variance and time variance. Rate variance is given as: (Actual Rate * Actual hours) – (Standard rate * Actual hours) this is (1)  (2) Time Variance is given as (Actual Hours * Standard Rate) – (Standard Hours * Standard Rate) this is (2)(3)...
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 Spring '08
 Christie
 Accounting, Cost Accounting, standard rate, direct labor variances

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