For each of the following independent cases, fill in the missing amounts: (Indic

Question

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 1,700 2.50 Kevin, Inc. Jess Company Valerie, Inc 105 1,000 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 0.80 640 231 $ 11.10 $ 8.00 5 3,900 780 4,000 $ 1,500 $ 18,000 700 F $ 1,414 U $ 1,300 F s 100 U $5,400 U

Explanation / Answer

Casey Co. Kevin Inc. Jess Company Valerie Inc. Units Produced 1700 800 105 1000 Standard hours per unit 2.50 0.80 2.20 2.92 Standard hours 4250 640 231 2920 Standard rate per hour 11.10 10.1 8.00 5.00 Actual hours worked 3900 780 175 4000 Actual Labor Cost 41990 7178 1500 18000 Direct labor rate variance 1300 F 700 F 100 U 2000 F Direct labor Efficiency variance 3885 F 1414 U 448 F 5400 U Formula labor Rate Variance (Standard rate - Actual rate) X Actual Hours labor Efficiency Variance (Standard Hours for Actual Output - Actual Hours worked ) X Standard rate Casey Co. 1 Standard Hours = Units Produced X Standard hours per unit = 1700 X 2.5 = 4250 Hours 2 labor Rate Variance = (Standard rate X Actual Hours)- Actual labor Cost 1300 = (11.1 X 3900 hours) - Actual labor cost Actual labor Cost = 43290-1300 Actual labor Cost = $41,990 3 labor Efficiency Variance = (Standard Hours for Actual Output - Actual Hours worked ) X Standard rate = (4250 Hours - 3900 Hours) X 11.1 per Hour = 3,885 F Kevin inc. 1 Units produced = Standard Hours / Standard hours per unit                                 = 640/0.8                                 = 800 units 2 labor Efficiency Variance = (Standard Hours for Actual Output - Actual Hours worked ) X Standard rate                                -1414 = (640-780) X Standard Rate                            Standard Rate =   1414 /140                            Standard Rate =   10.10 Per Hour 3 labor Rate Variance = (Standard rate X Actual Hours)- Actual labor Cost 700 = (10.1 X 780 hours) - Actual labor cost Actual labor Cost = 7878-700 Actual labor Cost = $7,178 Jess company 1 Standard hours per unit = standard hours / units produced                                = 231/105                             =2.20 hours per unit 2 labor Rate Variance = (Standard rate X Actual Hours)- Actual labor Cost     - 100 = ($ 8.00 X Actual Hours) - $1,500 Actual Hours = $1,400/8                           = 175 Hours 3 labor Efficiency Variance = (Standard Hours for Actual Output - Actual Hours worked ) X Standard rate = (231 Hours - 175 Hours) X 8 per Hour = 448 F Valerie Inc. 1 labor Efficiency Variance = (Standard Hours for Actual Output - Actual Hours worked ) X Standard rate -5,400 = (Standard Hours - 4,000 Hours) X 5 per Hour Standard Hours = =(-5400/5) + 4000 2920 Hours 2 Standard hours per unit = standard hours / units produced                                = 2920/1000                             =2.92 hours per unit 3 labor Rate Variance = (Standard rate X Actual Hours)- Actual labor Cost = ($5.00 X4000) -$18,000                                = $ 2,000

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