Question 1 (of 11) Save & Exlt Submit value: 10.00 points The following data ref

Question

Question 1 (of 11) Save & Exlt Submit value: 10.00 points The following data reflect the current month's activity for Vickers Corporation: Actual total direct labor Actual hours worked S655,200 37,700 36,500 Slandard labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour S 23,400 F S157,120 S 4.20 Variable overhead is applied based on standard direct labor-hours allowed. Required Compute the labor and variable overhead price and efficiency variances. (Indicate the effect of each variance by selecting "F"for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct labor: Price variance 5 23,400 Efficiency variance Variable overhead: 1,220 $ 5,040 Price variance Efficiency variance

Explanation / Answer

Direct labor:

Price variance = 23,400 F

Efficiency variance = 21,600U

Variable overhead:

Price variance = 1,220 F

Efficiency variance = 5,040U

Direct labor:

Actual costs = $655,200

Actual inputs at standard price = $655,200 + 23,400 = $678,600

Flexible budget = $18× 36,500 = $657,000

Price variance = $655,200 ? $678,600 = $23,400 F

Efficiency variance = $678,600 ? $657,000 = $21,600 U

Variable overhead:

Actual costs = $157,120

Actual inputs at standard price = $4.20 × 37,700 = $158,340

Flexible budget = $4.20 × 36,500 = $153,300

Price variance = $157,120 ? $158,340 = $1,220 F

Efficiency variance = $158,340 ? $153,300 = $5,040 U

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.