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What were the total actual direct hours worked aq

  • Humber College
  • ACCT 4001
  • SargentFog16809
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What were the total actual direct hours worked (AQ)?1,760.7,040.8,800.10,560.13,200.1. Excess hours worked, based on units produced = $88,000U variance (given)/$50 per hour (the standard wage rate) (given) = 1,760 hours.2. This excess represents 20% of standard hours allowed (given); therefore, standard hours allowed = 1,760 hours/0.20 = 8,800 hours.3. Therefore, actual hours = 8,800 standard hours + 1,760 excess hours = 10,560 hoursReferencesMultiple ChoiceDifficulty: 2 MediumLearning Objective: 14-03 Develop a general framework forsubdividing the master budget variance into component variances.SSTSSSSSSTSS
9/28/21, 10:57 PMAssignment Print View90/158176.Award:10.00 points177.Award:10.00 pointsSheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had thefollowing variances: direct labor rate variance = $30,000 favorable; direct labor efficiency variance = $50,000 unfavorable. Sheldon allows 5 standard direct laborhours per unit produced, and its standard direct labor hourly pay rate is $50. During the month, the company used 25% more direct labor hours than the standardallowed for the output achieved.What were the total actual direct hours worked (AQ)?1,000.3,000.4,000.5,000.6,000.1. Excess hours worked, based on units produced = $50,000U variance (given)/$50.00 per hour (the standard wage rate) (given) = 1,000 hours.2. This excess represents 25% of standard hours allowed (given); therefore, standard hours allowed = 1,000 hours/0.25 = 4,000 hours.3. Therefore, actual hours = 4,000 standard hours + 1,000 excess hours = 5,000 hoursReferencesMultiple ChoiceDifficulty: 2 MediumLearning Objective: 14-03 Develop a general framework forsubdividing the master budget variance into component variances.Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had thefollowing variances: direct labor rate variance = $27,000 favorable; direct labor efficiency variance = $55,000 unfavorable. Sheldon allows 4 standard direct laborhours per unit produced, and its standard direct labor hourly pay rate is $50. During the month, the company used 20% more direct labor hours than the standardallowed.What was the actual hourly rate (AP) for direct labor?$25.$29.$46.$50.$54.1. Direct labor rate variance = $27,000F (given)2. Labor rate variance/hour = total rate variance/actual hours worked = [(APSP) × AQ]/AQ = $27,000F/6,600 actual hours = $4 per hour F variance.3. SP = $50 per hour (given).4. Therefore, actual wage rate per hour (AP) = standard wage rate per hour (SP)favorable rate variance per hour = $50 per hour$4 per hour = $46 per hour.Note:if the rate variance had been unfavorable (U), then the amount of that variance, per hour, would have been added to—not subtracted from—the $50 perhour figure.ReferencesMultiple ChoiceDifficulty: 2 MediumLearning Objective: 14-03 Develop a general framework forsubdividing the master budget variance into component variances.

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Term
Fall
Professor
NoProfessor
Tags
Cost Accounting, Clear Manufacturing

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