Grand Display is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the actual results.) (Click the icon to view the standards.) Read the requirements. Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL= Direct labor) Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. x( ) = DL rate variance Requirements 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally responsible for each variance? 4. Interpret the variances. Print Done - Х
Grand Display is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the actual results.) (Click the icon to view the standards.) Read the requirements. Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL= Direct labor) Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. x( ) = DL rate variance Requirements 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally responsible for each variance? 4. Interpret the variances. Print Done - Х
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter24: Material And Labor Variances (primevar)
Section: Chapter Questions
Problem 4R: The worksheet you have developed will handle most simple variance analysis problems. Try the problem...
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
![Grand Display is a manufacturer of large flower pots for urban settings. The company has these standards:
(Click the icon to view the standards.) (Click the icon to view the actual results.)
Read the requirements.
Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the
nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL= Direct labor)
Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor.
DL rate variance
x (
x (
)
Requirements
1. Compute the direct labor rate variance and the direct labor efficiency variance.
2. What is the total variance for direct labor?
3. Who is generally responsible for each variance?
4. Interpret the variances.
Print
- X
Done](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F882f01b0-5b34-4623-992d-7e87f1b02b80%2Facdb28db-824e-4acd-8658-34001128cfc7%2F4ci7a96_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Grand Display is a manufacturer of large flower pots for urban settings. The company has these standards:
(Click the icon to view the standards.) (Click the icon to view the actual results.)
Read the requirements.
Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the
nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL= Direct labor)
Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor.
DL rate variance
x (
x (
)
Requirements
1. Compute the direct labor rate variance and the direct labor efficiency variance.
2. What is the total variance for direct labor?
3. Who is generally responsible for each variance?
4. Interpret the variances.
Print
- X
Done
![Grand Display is a manufacturer of large flower pots for urban settings. The company has these standards:
(Click the icon to view the standards.) (Click the icon to view the actual results.)
Read the requirements.
Require
nearest
Begin w
Actual Results
Grand Display allocated fixed manufacturing overhead to production based on standard direct labor
hours. Last month, the company reported the following actual results for the production of 1,400
flower pots:
Direct materials..
Direct labor....
Actual variable manufacturing
overhead ......
Actual fixed manufacturing overhead
Standard fixed manufacturing
overhead allocated based on actual
production......
Purchased 13,700 pounds at a cost of $6.10 per pound;
used 13,300 pounds to produce 1,400 pots
Worked 2.4 hours per flower pot (3,360 total DLH) at a
cost of $10.00 per hour
$5.70 per direct labor hour for total actual variable
manufacturing overhead of $19,152
$25,500
$28,000
Print
Done
- X
Standard Price and Volume
9 pounds per pot at a cost of $6.00 per
. pound
Direct materials (resin).
Direct labor....
Standard variable manufacturing overhead rate..... $5.00 per direct labor hour
Budgeted fixed manufacturing overhead ..
. $26,000
Standard fixed MOH rate.....…...
. $10.00 per direct labor hour (DLH)
Print
2.0 hours at a cost of $11.00 per hour
Done
-
X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F882f01b0-5b34-4623-992d-7e87f1b02b80%2Facdb28db-824e-4acd-8658-34001128cfc7%2F3ri1ra_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Grand Display is a manufacturer of large flower pots for urban settings. The company has these standards:
(Click the icon to view the standards.) (Click the icon to view the actual results.)
Read the requirements.
Require
nearest
Begin w
Actual Results
Grand Display allocated fixed manufacturing overhead to production based on standard direct labor
hours. Last month, the company reported the following actual results for the production of 1,400
flower pots:
Direct materials..
Direct labor....
Actual variable manufacturing
overhead ......
Actual fixed manufacturing overhead
Standard fixed manufacturing
overhead allocated based on actual
production......
Purchased 13,700 pounds at a cost of $6.10 per pound;
used 13,300 pounds to produce 1,400 pots
Worked 2.4 hours per flower pot (3,360 total DLH) at a
cost of $10.00 per hour
$5.70 per direct labor hour for total actual variable
manufacturing overhead of $19,152
$25,500
$28,000
Print
Done
- X
Standard Price and Volume
9 pounds per pot at a cost of $6.00 per
. pound
Direct materials (resin).
Direct labor....
Standard variable manufacturing overhead rate..... $5.00 per direct labor hour
Budgeted fixed manufacturing overhead ..
. $26,000
Standard fixed MOH rate.....…...
. $10.00 per direct labor hour (DLH)
Print
2.0 hours at a cost of $11.00 per hour
Done
-
X
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College