Reference no: EM133092397
Questions -
Q1. The following data relates to the finishing department of Tirade Corporation for the 4th quarter: Total actual overhead, $178,500; Budget allowance formula, $110,000 plus $0.50 per direct labor hour; Predetermined factory overhead rate, $1.50 per direct labor hour; Spending variance, $8,000 unfavorable; Efficiency variance, $9,000 unfavorable. The total factory overhead is divided into 3 variances - spending, idle capacity and efficiency. Calculate the actual direct labor hours worked in the finishing department during the 4th quarter.
Q2. Lani Corporation produces a product called Joy. The direct materials and direct labor standards for one unit of Joy are as follows:
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Standard Quantity
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Standard Price
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Standard Cost
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Direct Materials
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4.6 lbs
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$2.50/lb
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$11.50
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Direct Labor
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0.2 hr
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$35/hr
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7
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During the most recent month, the following activity was recorded:
a. 20,000 pounds of material were purchased at a cost of $2.35 per pound.
b. All of the materials purchased was used to produce 4,000 units of Joy.
c. 750 hours of direct labor time were recorded at a total labor cost of $30,375.
What is the direct labor efficiency variance?