Direct Labor Variances Ada Clothes Company produced 22,000 units during April. The Cutting Department used 4,200 direct labor hours at an actual rate of $13.60 per hour. The Sewing Department used 7,000 direct labor hours at an actual rate of $13.30 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $13.50. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Cutting Department Direct Labor Rate Variance Direct Labor Time Variance $ total $ Total Direct Labor Cost Variance b. The two departments have opposite results. The Cutting Department has a(n) cost variance. In contrast, the Sewing Department has a(n) cost variance. Sewing Department rate variance and a(n) | rate variance but has a(n) time variance, resulting in a total time variance, resulting in a

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 10E: Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct...
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Direct Labor Variances
Ada Clothes Company produced 22,000 units during April. The Cutting Department used 4,200 direct labor hours at an actual rate of $13.60 per hour. The Sewing Department used
7,000 direct labor hours at an actual rate of $13.30 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard
labor rate is $13.50. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 hour per unit, respectively.
a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. Enter a favorable variance as a
negative number using a minus sign and an unfavorable variance as a positive number.
Cutting Department
Direct Labor Rate Variance
Direct Labor Time Variance
Total Direct Labor Cost Variance
b. The two departments have opposite results. The Cutting Department has a(n)
cost variance. In contrast, the Sewing Department has a(n)
cost variance.
total
Sewing Department
rate variance and a(n)
rate variance but has a(n)
time variance, resulting in a total
time variance, resulting in a
Transcribed Image Text:Direct Labor Variances Ada Clothes Company produced 22,000 units during April. The Cutting Department used 4,200 direct labor hours at an actual rate of $13.60 per hour. The Sewing Department used 7,000 direct labor hours at an actual rate of $13.30 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $13.50. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Cutting Department Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance b. The two departments have opposite results. The Cutting Department has a(n) cost variance. In contrast, the Sewing Department has a(n) cost variance. total Sewing Department rate variance and a(n) rate variance but has a(n) time variance, resulting in a total time variance, resulting in a
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