Standard Cost System Labor Variance

question 100

Essay

Standard cost system labor variance
The following computations of March labor variances for Sam's Supply Company are incomplete.The missing items are labeled (a)through (d).If necessary,round your answers.
Labor rate variance = 4,800 hours × [(a)− $8.50] = $350 favorable
Labor efficiency variance = (b)× [5,000 hours − (c)] = $(d)
On the appropriately labeled line,identify each missing item by name (a through c)and show the missing value (a through d).Show supporting computations in the space provided.
(a)________ $________
(b)________ $________
(c)________ ________ hours
(d)$________ F or U (Circle the correct term. )
(e)During March,the supervisor left for vacation without arranging for a replacement.Which variances would have been most affected by this situation? ________
Computations

---

Definitions:

Descriptive Statements

Statements that provide detailed explanations or descriptions of scenarios, processes, or items without making analytical judgments.

FIFO Perpetual

An inventory valuation method where the first items purchased (First In) are the first ones to be used or sold (First Out) on a continuous basis.

LIFO Perpetual

A method of inventory valuation which assumes that the last items placed in inventory are the first ones sold, applied continuously throughout the accounting period.

Weighted Average

This is a calculation method that takes into account the varying degrees of importance of the numbers in a data set, giving different weights to some of the data points.