San Marcos Lamp Inc. has direct labor cost standard of $14 per direct labor hour

Question

San Marcos Lamp Inc. has direct labor cost standard of $14 per direct labor hour and an efficiency standard of 4 hours per lamp. The actual results for the period when 30 lamps were built were 130 direct labor hours at an actual cost of $1,560.

What is the direct labor total variance?

The following data relate to direct materials for the month for the Altex Blanket Company: The standard costs for the work done was 5,800 pounds of material at $9.50 per pound. The actual costs were 6,000 pounds at $10 per pound. What is the direct materials cost variance?

Alamo Outdoor makes seat covers. The budgeted selling price is $12 per cover, the variable costs are $7 per cover, and fixed costs are $6,000. What is the budgeted operating income for 4,000 covers?

The company desires a 10% return on investments and the cash to be received in two years is $10,000. Determine the present value of the $10,000 (which will be the amount the company will be willing to pay today), using the following partial table of present value of $1 at compound interest:

Explanation / Answer

1 direct labor total variance = 1560-(30*14*4)= 120 F 2 Direct materials cost variance = (6000*10)-(5800*9.5)= 4900 U 3 Budgeted operating income=4000*(12-7)-6000= 14000 4 Present value = 10000*0.89 = 8900

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