Vista Mfg.\'s July production involved actual direct labor costs of $46,287 for
ID: 2380085 • Letter: V
Question
Vista Mfg.'s July production involved actual direct labor costs of $46,287 for 3,700 direct labor hours. The budget for the July level of production called for 3,800 direct labor hours at $12.50 per hour, using a standard cost system.
17. Refer to the information above. With respect to labor costs, Vista/>'s production manager is responsible for:
Vista/>'s labor rate variance for July is:Answer
Vista/>'s labor efficiency variance for July is:Answer
Which of the following is the most likely explanation for the types of labor variances resulting from Vista/>'s July operations?Answer
A) Any labor rate variance as well as any labor efficiency variance. B) Only a labor rate variance. C) Only a labor efficiency variance. D) Only unfavorable labor variances.Explanation / Answer
A) Any labor rate variance as well as any labor efficiency variance.
B) $1,213 favorable.
D) $37 unfavorable.
A) Management used highly skilled workers who received a higher wage but also worked more efficiently.
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