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Unformatted text preview: In-Class Problem 10 - 1A manufacturing company is expected to complete a task in 45 minutes. During a recent accounting period, 2,600 completed units were produced, resulting in the following labor variances: total direct-labor variance, $104 favorable and labor rate variance, $746 unfavorable. The standard labor rate is $10 per hour.Requireda.Calculate the standard labor costb.Calculate the actual hours workedc.Calculate the actual wage rateIn-Class Problem 10-2Springsteen Company manufactures guitars. The company uses a standard, job-order cost-accounting system in two production departments. In the Construction Department, the wooden guitars are built by highly skilled craftsmen and coated with several layers of lacquer. Then the units are transferred to the Finishing Department, where the bridge of the guitar is attached and the strings are installed. The guitars are also tuned and inspected in the Finishing Department.Each finished guitar contains seven pounds of veneered wood. In addition, one pound of wood is typically wasted in the production process. The veneered wood used in the guitars has a standard price of $12 per pound. The other parts needed to complete each guitar, such as the bridge and strings, cost $15 per guitar. The labor standards for the two production departments are: (1) Construction Department - 6 hours of direct labor at $20 per hour, and (2) Finishing Department - 3 hours of direct labor at $15 per hour.The following pertains to the month of July:1. There were no beginning or ending WIP inventories in either production department....
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- Spring '07