Schiffer Corporation manufactures agricultural machinery. At a recent staff meeting, the following direct-labor variance report for the year just ended was presented by the controller. January February March April May June July August September October November December SCHIFFER CORPORATION Direct-Labor Variance Report Direct-Labor Rate. Variance Amount $ 800 F 4,900 F 100 U 2,000 U 3,800 F 3,900 F 4,200 F 5,100 F 4,800 F 5,700 F 4,200 F 4,300 F Standard Cost, % 0.16% 0.98% 0.02% 0.40% 0.76% 0.78% 0.84% 1.02% 0.96% 1.14% Direct-Labor Efficiency Variance Standard Cost, % Amount $5,000 U 7,500 U 9,700 U 12,800 U 20,100 U 17,000 U 28,500 U 38,000 U 37,000 U 42,000 U 0.84% 60,000 U 0.86% 52,000 U 1.00% 1.50% 1.94% 2.56% 4.02% 3.40% 5.70% 7.60% 7.40% 8.40% 12.00% 10.40% Schiffer's controller uses the following rule of thumb: Investigate all variances equal to or greater than $30,000, which is 6 percent of standard cost.

Schiffer Corporation manufactures agricultural machinery. At a recent staff meeting, the following direct-labor variance report for the year just ended was presented by the controller. January February March April May June July August September October November December SCHIFFER CORPORATION Direct-Labor Variance Report Direct-Labor Rate. Variance Amount $ 800 F 4,900 F 100 U 2,000 U 3,800 F 3,900 F 4,200 F 5,100 F 4,800 F 5,700 F 4,200 F 4,300 F Standard Cost, % 0.16% 0.98% 0.02% 0.40% 0.76% 0.78% 0.84% 1.02% 0.96% 1.14% Direct-Labor Efficiency Variance Standard Cost, % Amount $5,000 U 7,500 U 9,700 U 12,800 U 20,100 U 17,000 U 28,500 U 38,000 U 37,000 U 42,000 U 0.84% 60,000 U 0.86% 52,000 U 1.00% 1.50% 1.94% 2.56% 4.02% 3.40% 5.70% 7.60% 7.40% 8.40% 12.00% 10.40% Schiffer's controller uses the following rule of thumb: Investigate all variances equal to or greater than $30,000, which is 6 percent of standard cost.

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Description: Which variances would have been investigated during the year? (Indicate month and type of variance.) Which variances would have been investigated during the year? (Indicate month and type of variance.)Note: Indicate the effect of each variance by sel

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7PA: Ellis Companys labor information for September is as follows: A. Compute the standard direct labor...

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