Calculation of Direct Materials and Direct Labor Variance
Direct Materials Variance
Total Direct
Materials Variance
Direct Labor Variance
Total Direct
Labor Variance
Using the Alt Lab 101 Data.xlsx file, apply the same steps in Lab 101 to Alternate Lab 10.1, using the following details:
LABH will make 5,500 handbags with a standard quantity of leather and clear polyethylene (plastic) per handbag: 20.25 square inches of material @ $0.31 per square inch. Actual quantity of materials for those 5,500 handbags produced was 21.00 square inches of materials @ $0.32 per square inch. The standard labor is 1.00 hour for each handbag with a cost of $7.50 per hour. The actual labor used was 105 hours at $7.75 per hour.
Required:
1. Using performance standards for the labor utilized in the manufacture of handbags, calculate the direct labor variances, including rate and efficiency variances.
2. Use conditional formatting to identify favorable and unfavorable variances.
Mester the Data
Use the Alt Lab 10.1 Data.xlsx dataset
Perform the Analysis
Alternate Labs - On Your Own don't have step-by-step instruction or video support. Apply your experience from the original lab. If needed, reference the text or eBook for instructions and steps from the original lab.
Answer the following questions based on the details provided.
1. What is the labor rate variance?
2. Total Actual Labor Costs less Total Standard Labor Costs are equal to
3. A favorable price variance suggests that actual costs are
4. What is the overall direct labor variance?
5. Leaving all other variables the same, if the standard labor rate for 1 hour were $7.40 per hour, the overall direct labor variance would have been
