When the actual direct labor rate is unknown, the total direct labor payroll can be found by multiplying the actual hours by the standard rate, then subtracting the favorable labor variance. (32,000 × $5.04) – $6,720 = $154,560Answer (B) is incorrect because The total $6,720 DL ...
This is the portion of volume variance that is due to the difference between the budgeted output efficiency and the actual efficiency achieved. This is due to labor working efficiency. Thus, it can be expressed as: Efficiency variance = St. rate (Actual production — St. production ) in uni...
Justify the method of writing off the production-volume variance to the cost of goods sold, as compared to allocating the variance to work-in-process and finished goods inventories. What is the ending cost of inventory using FIFO, LIFO and average cost methods? Explai...
Which of the following is the best explanation for why it is necessary to calculate equivalent units of production in a process costing environment? a. In most process costing systems, direct materials are added at the beginning of the process while conv Define cost be...