REQUIRED Calculate the following variances from the information provided below. In each case also state whether the variance is favourable or unfavourable. 1.4.1 Labour rate variance 1.4.2 Labour efficiency variance 1.4.3 Total labour variance without using the labour rate variance and labour efficiency variance. INFORMATION Raleigh Enterprises manufactures bicycles. During the year 3 000 bicycles were produced. The actual labour time was 28 000 hours at a total cost of R2 660 000. Raleigh Enterprises had the following labour standard for the 4 000 bicycles that it expected to produce during the year: 9 hours per unit at R90 per hour

REQUIRED Calculate the following variances from the information provided below. In each case also state whether the variance is favourable or unfavourable. 1.4.1 Labour rate variance 1.4.2 Labour efficiency variance 1.4.3 Total labour variance without using the labour rate variance and labour efficiency variance. INFORMATION Raleigh Enterprises manufactures bicycles. During the year 3 000 bicycles were produced. The actual labour time was 28 000 hours at a total cost of R2 660 000. Raleigh Enterprises had the following labour standard for the 4 000 bicycles that it expected to produce during the year: 9 hours per unit at R90 per hour

Name: 1.4REQUIRED Calculate the following variances from the information pr
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Description: 1.4REQUIRED Calculate the following variances from the information provided below.In each case also state whether the variance is favourable or unfavourable.1.4.1 Labour rate variance1.4.2 Labour efficiency variance1.4.3 Total labour variance withou

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5EB: Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following...

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A. What percentage of the variation in overhead costs is explained by the independent variable? B. What is the total overhead cost for an estimated activity level of 50,000 direct labor hours? C. How much is the variable manufacturing cost per unit, using the variable overhead estimated by the regression (assuming that direct materials and direct labor are variable costs)? D. What is the expected contribution margin per unit to be earned during the first year on 20,000 units of the new product? (Assume that all marketing and administrative costs are fixed.) E. What is the manufacturing cost equation implied by these results?
A company reports the following information for its direct labor. Actual hours of direct labor used (AH) Actual rate of direct labor per hour (AR) Standard rate of direct labor per hour (SR) Standard hours of direct labor for units produced (SH) 72,000 $ 16 $ 15 73,300 AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable. Actual Cost Standard Cost
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For a simple regression analysis model that is used to allocate factory overhead, an internal auditor finds that the intersection of the line of best fit for the overhead allocation with the y-axis is $14,000. The slope of the line is 0.2. The independent variable, factory wages, amounts to $810,000 for the month. What is the estimated amount of factory overhead to be allocated for the month? Multiple Choice $289,400. $162.000. $68,000. $88,000.
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ThingOne Company has the following information available for the past year. They use machine hours to allocate overhead. What is the variable overhead efficiency variance?
Breakaway Companys labor information for May is as follows: A. What is the actual direct labor rate per hour? B. What is the standard direct labor rate per hour? C. What was the total standard direct labor cost for May? D. What was the direct labor rate variance for May?
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Scattergraph method Using the data in P4-2 and a piece of graph paper: 1. Plot the data points on the graph and draw a line by visual inspection, indicating the trend shown by the data points. 2. Determine the variable cost per unit and the total fixed cost from the information on the graph. 3. Determine the variable cost to be charged to the product for the year. 4. Determine the fixed cost to be charged to factory overhead for the year. 5. Do these answers agree with the answers to P4-2? Why or why not?
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