Calculate the direct labor cost variance

Assignment Help Accounting Basics
Reference no: EM132081721

Question - Emerald Marine Stores Company manufactures decorative fittings for luxury yachts that require highly skilled labor, and special metallic materials. Emerald uses standard costs to prepare its flexible budget. For the first quarter of 2015, direct material and direct labor standards for one of their popular products were as follows.

Direct materials: 3 pounds per unit; $4 per pound

Direct labor: 4 hours per unit; $20 per hour

Emerald produced 5,000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the company used 25,000 direct labor hours and actual total direct labor costs were $375,000. Calculate the direct labor cost variance.

$300,000 Unfavorable

$125,000 Favorable

$300,000 Favorable

$125,000 Unfavorable

Reference no: EM132081721

Questions Cloud

What is the operating income : Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. What is the operating income for 2015
What would be the cost savings : If Quail is operating at capacity, what would be the cost savings if the transfer was made and Marlin currently is purchasing 100,000 units on the open market
Prepare star health income statement : Star Health Inc. is a fitness center in Oklahoma City. Prepare Star Health's income statement for the month of October
What was the cost of raw materials purchased : Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000 respectively. What was the cost of raw materials purchased
Calculate the direct labor cost variance : Emerald produced 5,000 units during the quarter. Direct materials: 3 pounds per unit; $4 per pound. Calculate the direct labor cost variance
Accommodate potential opportunities or threats : You also mentioned, “monitoring for early signs that change may be needed to accommodate potential opportunities or threats,”
What was the overall fixed overhead volume variance : The standard hours allowed for the actual output of the month totaled 3,450 machine-hours. What was the overall fixed overhead volume variance for the month
What was the number of equivalent units of production : If Department K had 1,000 units, 20% completed, what was the number of equivalent units of production for conversion costs for the period
Discuss the difference between training and development : Briefly discuss the difference between training and development and how they can affect a performance appraisal. Your response should be at least 300 words.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Who are individuals that utilize the information gathered

Accounting Function and Financial Management Function- What are benefits of each, and who are individuals that utilize information gathered from each function?

  My scenario

My scenario

  Utech company bottles and distributes livit a diet soft

utech company bottles and distributes livit a diet soft drink. the beverage is sold for 50 cents per 16-ounce bottle to

  What methods have you used for estimating bad debt

What methods have you used for estimating bad debt? Why is it easier for someone to perpetrate fraud using a journal entry than with a ledger?

  Would both be happy about the outcome and why

Use the normal form represent the situation and identify the Nash Equilibrium if there is any. Would both be happy about the outcome and why?

  Should hanson inc accept the offer

If the outside supplier offers to sell the parts for $425 each, should Hanson, Inc. accept the offer

  How should devers respond to adkinss request

Should Devers's knowledge of the compensation plan be a factor that influences her estimate?

  Compute Anderson Steel Company basic and diluted EPS

On March 31, 2011, 100,000 new shares were sold at a price of $50 per share. Compute Anderson Steel Company's basic and diluted EPS for the year ended

  Compute the total effect of the errors on net income

An insurance premium of $62,400 was prepaid in 2017 covering the years 2017, 2018, and 2019. The entire amount was charged to expense in 2017.

  How much of this loss may corbin deduct

The corporation has $30,000 of other debt. This year the corporation reported a $100,000 loss. How much of this loss may Corbin deduct

  What are the expected cash collections

The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,600, 17,000, 19,000, and 20,000 units, respectively.

  How much was the beginning balance of the cash account

Consider the following information taken from the cash account. How much was the beginning balance of the cash account

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd