10.00 points For each of the following independent cases, fill in the missing am
ID: 2573420 • Letter: 1
Question
10.00 points For each of the following independent cases, fill in the missing amounts: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable. Round your per unit rates to 2 decimal places. Casey Co. Kevin, Inc.Jess Company Valerie, Inc. Units produced Standard hours per unit Standard hours Standard rate per hour Actual hours worked Actual labor cost Direct labor rate variance Direct labor efficiency variance 2,000 3.50 120 1,500 0.90 900 300 $14.50 6,000 $ 7.00 4,900 $ 31,850 $ 10.50 975 $ 3,090 $1,700F S 975 F$150 U $765 $2,900 UExplanation / Answer
Casey Co.:
Standard hours = Units produced * Standard hours per unit
Standard hours = 2,000 * 3.50
Standard hours = 7,000
Direct Labor Rate Variance = Actual Labor Cost - Standard Rate * Actual hours worked
-$1,700 = Actual Labor Cost - $14.50 * 6,800
Actual Labor Cost = $96,900
Direct Labor Efficiency Variance = Standard Rate * (Actual hours worked - Standard hours)
Direct Labor Efficiency Variance = $14.50 * (6,800 - 7,000)
Direct Labor Efficiency Variance = $2,900 F
Kevin, Inc.:
Standard hours = Units produced * Standard hours per unit
900 = Units produced * 0.90
Units produced = 1,000
Direct Labor Efficiency Variance = Standard Rate * (Actual hours worked - Standard hours)
765 = Standard Rate * (975 - 900)
Standard Rate = $10.20
Direct Labor Rate Variance = Actual Labor Cost - Standard Rate * Actual hours worked
-$975 = Actual Labor Cost - $10.20 * 975
Actual Labor Cost = $8,970
Jess Company:
Standard hours = Units produced * Standard hours per unit
300 = 120 * Standard hours per unit
Standard hours per unit = 2.50
Standard Labor Cost = Standard Rate * Standard hours
Standard Labor Cost = $10.50 * 300
Standard Labor Cost = $3,150
Total Direct Labor Variance = Actual Labor Cost - Standard Labor Cost
Total Direct Labor Variance = $3,090 - $3,150
Total Direct Labor Variance = $60 F
Total Direct Labor Variance = Direct Labor Rate Variance + Direct Labor Efficiency Variance
$60 F = $150 U + Direct Labor Efficiency Variance
Direct Labor Efficiency Variance = $210 F
Direct Labor Efficiency Variance = Standard Rate * (Actual hours worked - Standard hours)
-$210 = $10.50 * (Actual hours worked - 300)
-20 = Actual hours worked - 300
Actual hours worked = 280
Valerie, Inc.:
Direct Labor Efficiency Variance = Standard Rate * (Actual hours worked - Standard hours)
$2,800 = $7.00 * (4,900 - Standard hours)
Standard hours = 4,500
Standard hours = Units produced * Standard hours per unit
4,500 = 1,500 * Standard hours per unit
Standard hours per unit = 3.00
Direct Labor Rate Variance = Actual Labor Cost - Standard Rate * Actual hours worked
Direct Labor Rate Variance = $31,850 - $7.00 * 4,900
Direct Labor Rate Variance = $2,450 F
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