Uses standard costing-labor rate variance

Assignment Help Financial Accounting

Reference no: EM13790297

The Collins Corporation uses standard costing and has established the following direct material and direct labor standards for each unit of the single product it makes:

Direct materials: 4 gallons at $8 per gallon

Direct labor: 1 hour at $16 per hour

During July, the company made 6,000 units of product and incurred the following costs:

Direct materials purchased: 26,800 gallons at $8.20 per gallon

Direct materials used: 25,200 gallons

Direct labor used: 5,600 hours at $15.30 per hour

The direct materials purchases variance is computed when the materials are purchased.

The labor rate variance for July was:

A $3,920 Unfavorable

B $1,120 Favorable

C $6,120 Unfavorable

D $3,920 Favorable

Reference no: EM13790297

Questions Cloud

Making use of the capital asset pricing model : Making use of the Capital Asset Pricing Model, compute the cost of Common equity assuming a risk free rate of 2%, a market rate of 5 % and an assumed beta of 1.5.

What is the mechanism of injuries of shaken baby syndrome : What are the elements of the crime of burglary? What is the mechanism of injuries of Shaken Baby Syndrome

Classified as direct labor : Which of the following is not classified as direct labor?

How would you respond to your partner : Your partner tells you that his wife is sick and he could really use that marijuana at home for medicinal purposes to help her with her pain. How would you respond to your partner

Uses standard costing-labor rate variance : The Collins Corporation uses standard costing and has established the following direct material and direct labor standards for each unit of the single product it makes:

Write a critic essay about hamlets novel : Write a critic essay about Hamlet's novel in the 16th or 17th century start with Introduction including the theme Talk about a point that you agree or disagree with in the novel.

Material weight -vs - cost related concept : the parts.Based off of the manufacturing process you choose, what machines are needed? How much will that cost for startup?

What are the components of an expert system : What are the components of an expert system? Research several companies that use expert systems. How are expert systems used to assist in the decision making process? Be sure to identify your company and do not repeat another classmate's company

Creditable foreign income tax-foreign tax credit limitation : Quantco, a domestic corporation, is an engineering consulting firm that has its main offices in San Diego, California. Because Quantco does a considerable amount of business in China, it has a branch office in Beijing. Compute Quantco's creditable fo..

User Account

All Pages