Essay
Cruz Company established a direct labor standard of 0.5 hour per unit at $12 per hour for one of its products.In April,Cruz produced 16,000 units and used 8,100 direct labor hours.
Required:
Based on this information,
(a)Which variance can you calculate?
(b)What is the dollar amount of the variance?
(c)Is the variance favorable or unfavorable?
(d)Do you consider the variance to be sufficiently material that managers should investigate to discover the cause of the variance?
Correct Answer:
Verified
(a)Labor usage variance
(b)Labor usage v...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
(b)Labor usage v...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q62: A benefit of using a standard cost
Q67: What are examples of budget gamesmanship that
Q105: Flexible budget amounts for variable costs and
Q108: Select the incorrect statement regarding flexible budgets.<br>A)
Q113: The standard amount of materials required to
Q127: Which of the following income statement formats
Q131: Grenada Company estimates sales of 15,000
Q133: The Russell Company provides the following
Q137: Standard cost systems facilitate the management practice
Q152: Two budgeting games sometimes played by employees