Chapter 8 Connect Hom × \\ D Self-Service-Student Sc XV Mail.bmilsteadl20@an × /
ID: 2569308 • Letter: C
Question
Chapter 8 Connect Hom × D Self-Service-Student Sc XV Mail.bmilsteadl20@an × / MChapter 8 -) cl ezto.mheducation.com/hm.tpx Kalina's Doll Company produces handmade dolls. The standard amount of time spent on each doll is 2.0 hours. The standard cost of labor is $10 per hour. The company planned to make 8,000 dolls during the year but actually used 17,500 hours of labor to make 9,000 dolls. The payroll amounted to $172,375 Required: a. Should labor variances be based on the planned volume of 8,000 dollis or the actual volurne of 9,000 dolls? O The planned volume of 8,000 dolls O The actual volume of 9,000 dolls b. Prepare a table that shows the standard labor price, the actual labor price, the standard labor hours, and the actual labor hours. (Round "Standard price" and "Actual price" to 2 decimal places.) Labor Variance Information Table Amounts Standard labor price Actual price per hour Standard hours for flexible budget Actual hours used Hrs. Hrs. c. Compute the labor price variance and indicate whether it is favorable (F) or unfavorable (U) (Select None" if there is no effect (i.e., zero variance).) Total labor price variance d. Compute the labor usage vanance and indicate wheher its is favorable (Fi or unfavorable U) (Select None" if there is no effect (i.e., zero variance).) Total labor usage Type here to search OSHIBAExplanation / Answer
a)Actual volume of 9000dolls
b)
c)labor price variance =AH[AR-SR]
=17500[9.85-10]
= -2625 F
D)labor usage variance =SR[AH-SH]
= 10[17500-18000]
= -5000 F
standard labor price $10 Actual labor rate per hour [172375/17500] 9.85 standard hours for flexible[9000*2] 18000 Actual hours 17500