Chapter 10 Inclass quiz_SOLN

Chapter 10 Inclass quiz_SOLN - of $.35 per minute. Actual...

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Acc 200P Name: ________________________ Lab Section #_________________ Chapter 10 SOLUTION At the end of its calendar year, Wolfpack Enterprises had the following information available relating to direct labor costs: Per the Flexible Budget Per the Actual Contribution Margin Income Statement Direct Labor Costs $2,100,000 $2,400,000 1. Based on the above information, what is the overall direct labor variance? Is it favorable or unfavorable? $__ 300,000 unfavorable _____ 2. In order to break-down the overall variance into rate versus efficiency variances, the following additional information is given: actual number of units produced and sold during the year was 100,000. It was budgeted that each unit would require 60 minutes of direct labor at a cost
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Unformatted text preview: of $.35 per minute. Actual direct labor minutes and cost used during the year were 8,000,000 minutes at a cost of $.30 per minute. Based on this information, calculate the direct labor rate and efficiency variances. AM used X AR AM used X SR SM allowed X SR 8,000,000 minutes X $.30 8,000,000 min X $.35 6,000,000 min X $.35 = $2,400,000 = $2,800,000 = $2,100,000 DL rate variance = $400,000 F DL efficiency var. = $700,000 U Overall Variance = $300,000 U SQ allowed = How manyminutes should have been used for the production of 100,000 units? 60 minutes x 100,000 = 6,000,000...
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