Hickam Company Makes One Product,for Which It Has Developed the Following

question 102

Essay

Hickam Company makes one product,for which it has developed the following standard for labor: each unit should require 1.50 hours at $12/hour.In April,Hickam made 10,000 units,using 1.65 hours per unit at a cost of $11.50 per hour.
Required:
(a)Determine the total labor variance and indicate whether it is favorable or unfavorable.
(b)Determine the labor price variance and indicate whether it is favorable or unfavorable.
(c)Determine the labor usage variance and indicate whether it is favorable or unfavorable.

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Definitions:

Bank Statement

A document issued by a bank listing all transactions in an account over a specific period, including deposits, withdrawals, fees, and interest earned.

Checkbook Balance

The current total amount of money available in a checking account, as recorded by the account holder in their checkbook.

Outstanding Checks

Checks that have been written and recorded in the account balance but have not yet been cashed or cleared by the bank.

Outstanding Deposit

Funds that have been received but not yet processed by a financial institution.