Maurice Tutor

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Category > Accounting Posted 17 Aug 2017 My Price 8.00

Dancing Waters

Analyzing Cost Variances

Se4. aCCounting ConneCtion â–¶ Dancing Waters produces fountains. The company analyzes only variances that differ by more than 5 percent from the standard cost. The controller computed the following direct labor efficiency variances for May:

 

 

Direct Labor efficiency Variance

Standard Direct Labor Cost

Product 4

$1,200 (U)

$24,000

Product 6

3,200 (F)

42,800

Product 7

2,000 (U)

42,000

Product 9

1,600 (F)

34,000

Product 12

2,800 (U)

50,000

For each product, determine the variance as a percentage of the standard cost (round to one decimal place). Then identify the products for which variances should be analyzed and suggest possible causes for the variances.

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 05:08 PM My Price 8.00

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