****I have everything correct except for standard cost and Total direct labor co

Question

****I have everything correct except for standard cost and

Total direct labor cost variance****

problem:PR 23-2B

I’m Really Cold Coat Company makes women’s and men’s coats. Both products require filler and lining material. The following planning information has been made available:

I’m Really Cold Coat Company does not expect there to be any beginning or ending inventories of filler and lining material. At the end of the budget year, I’m Really Cold Coat Company experienced the following actual results:

Total direct labor cost variance****

Explanation / Answer

Standard Cost and Direct labour cost variance is computed as under:

Women's Coats Men's Coats Total Direct Labor Variance Rate variance: Actual rate $         14.10 $       13.30 Standard rate             14.00           13.00 Variance $           0.10 $         0.30 Actual time             1,825           2,800 Direct labor rate variance¾(favorable) unfavorable 182.5 $     840.00 $   1,022.50 Time variance Actual tiime             1,825           2,800 Standard time             1,760           2,900 Variance                 65             (100) Standard rate $14.00 $13.00 Direct labor time variance¾(favorable) unfavorable $       910.00 $ (1,300.00)        (390.00) Total direct labor cost variance¾(favorable) unfavorable $     632.50 Total direct labor cost variance: Actual cost 25732.5 37240 Standard cost (Standard hours* Standard Rate) 24640 37700 Total direct labor cost variance¾(favorable) unfavorable 1092.5 -460 632.5

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