Roberts Company
Roberts Company Has the Following Information Available for the Current

question 156

Essay

Roberts Company
Roberts Company has the following information available for the current year:
Standard:
Material           $4.25$ feet per unit @ $\$ 2.75$ per foot
Labor                7direct labor hours@ $\$9.25$ per unit

Actual:
Material               128,000 feet used(130,000 feet purchased @ $\$ 2.80$ per foot
Labor                    212,000 chrect labor hours incurred @ $\$ 9.30$ per hour
                              30,000 units were produced.

Refer to Roberts Company.Compute the labor rate and efficiency variances.

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Definitions:

Income Statements

Financial statements that summarize a company's revenue, expenses, and profits over a specific period of time.

Standard Cost

A predetermined cost of manufacturing, delivering, or producing goods or services under normal conditions.

Variance Accounts

Financial accounts used to record the differences between planned and actual figures in budgeting and accounting.

Favorable Variances

Differences between planned and actual performance that result in a better-than-expected financial outcome.