What is rate variance for direct manufacturing labour

Assignment Help Managerial Accounting
Reference no: EM132954771

A small local Covid Supply company produces a variety of cloth facemasks in an automated process. Expected production per month is 120,000 units. The company budgets to produce 400 facemasks per direct manufacturing labour hour (DMLH). The budgeted labour rate is $.08 per mask.

  • Actual direct manufacturing labour was $9,240 with an actual labour rate of $33.00 per hour. Plant utility costs were an additional $.15 per mask. Variable sales and marketing costs were $.10 per unit sold. The company produced 110,000 units based on customer orders, so all production was sold as it was produced.

Required:

Problem 1: What is the Rate and Efficiency variance for Direct Manufacturing Labour?

A) Rate Variance $280 F; Efficiency Variance $160 F
B) Rate Variance $280 U; Efficiency Variance $160U
C) Rate Variance $280 U; Efficiency Variance $640 F
D) Rate Variance $280 U; Efficiency Variance $640U
E) None of the other answers.

Reference no: EM132954771

Questions Cloud

Compute the inventory turnover ratio : Problem 16-15 (Algo) Net revenue $355,000Cost of goods sold 310,000Value of production materials on hand 42,500 The owner of a large machine shop has just finis
What is the maximum that can be issued and still pay off : Newspaper reports, What is the maximum that can be issued and still pay off for the entire project, assuming that 1.1 million tickets will be sold.
Compute the payback period : Problem - Joe's Hardware is adding a new product line that will require an investment of $1,512,000. Compute the payback period
Assess the essential impact of job satisfaction : Assess the essential impact of job satisfaction and motivation in the workplace.
What is rate variance for direct manufacturing labour : Actual direct manufacturing labour was $9,240 with an actual labour, What is the Rate and Efficiency variance for Direct Manufacturing Labour?
Explain good communication and people skills : Not only is the leader to be proficient in business and industry standards, but also good communication and people skills are required.
Which company should you invest in : Company B has earnings per share of $20 and a market price of $200. Based on that information alone, which company should you invest in
What is united healthcare corporate beta : The well-diversified portfolio's average rate of return is 8% at it stand-alone risk is s = 0.02. What is United Healthcare's corporate beta
Average inventory and ordering cost per order : A large dairy firm, the Cow and Buffalo Company, buys bins every year, which it uses in the warehousing of its bottled products. A local vendor has offered the

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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