38. Required information Assume that the company computes variances at the earli

Question

38.

Required information

Assume that the company computes variances at the earliest point in time. The direct-labor efficiency variance is:

$8,036F.

$8,036U.

$6,000F.

$6,000U.

None of these.

39.

Required information

Assume that the company computes variances at the earliest point in time. The standard hours allowed for the work performed are:

rev: 10_25_2011

40,280.

39,750.

39,600.

39,500.

None of these.

  Cost standards for one unit of product no. C77:      Direct material 3 pounds at $2.50 per pound $7.50      Direct labor 6 hours at $7.50 per hour 45.00   Actual results:      Units produced 6,600 units      Direct material purchased 25,900 pounds at $2.70 $69,930      Direct material used 19,500 pounds at $2.70 52,650      Direct labor 40,400 hours at $7.30 294,920

Explanation / Answer

38) Direct labour efficiency variance = (Standard hours-actual hours)standard rate

                                                   = (6600*6-40400)7.50

Direct labour efficiency variance = 6000 U

so answer is d) 6000 U

39) Standard hours allowed for the work performed are = 6600*6 = 39600

so answer is c) 39600

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