Determine the direct labor efficiency variance
Course:- Accounting Basics
Reference No.:- EM13129583

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Explorer, Inc., manufactures lanterns for camping. The company's direct labor rates have been set by the terms of the current labor contract. Direct labor rate standards have been assigned for each job classification. In May 20xx, a young apprentice was being trained during regular working hours to become a machine operator on one of the turret lathes. A timekeeper determined that the apprentice had spent a total of 48 hours as a novice machine operator in May. Standard time for the same work output is 32 hours. The apprentice earned $6.25 per hour in May. The standard direct labor rate for machine operators working on turret lathes is $10 per hour.

From the data provided, determine the direct labor efficiency variance and the direct labor rate variance that resulted from the temporary substitution of the apprentice for the regular machine operator. (Note that, according to the labor contract, the apprentice is not entitled to the same rate as a regular machine operator during the training period.)

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Chapter 5 of the course textbook proposes a four-stage creative process to resolve problems and issues (pages 99-101). Apply the four-stage process to the following scenario
Demonstrate the need for your proposal to be adopted. Explain how the program would function when implemented. Estimate the first-year cost of adopting the proposal. Note onl
The deferred tax expense is the: a. increase in balance of deferred tax asset minus the increase in balance of deferred tax liability. b. increase in balance of deferred tax l
Mrs Harris, the owner of three rented houses in Extown, asks her next-door neighbour, Ted, to collect rent from the tenants for her while she is abroad on business. Ted coll
Edgemont paid cash dividend of 25,000 in 2006. No additional stock was issued. Compute the retained earnings on December 31, 2005, and 2006.
Depreciation Method and Useful Life Building: 150%-declining-balance; 25 years. Machinery and equipment: Straight-line; 10 years. Automotive equipment: Sum of the years'dig
What is Omega's charitable contributions deduction for the current year and its charitable contributions carryover to next year, if any?
Write a 700- to 1,050-word paper in which you explain the nature and functions of auditing. Relate your explanation to the audit functions in your organization, or an organi