Use the following data to find the direct labor cost variance. Direct labor stan
ID: 2479927 • Letter: U
Question
Use the following data to find the direct labor cost variance. Direct labor standard (4 hrs. @ $5/hr.) $20 per unit Actual hours worked per unit 3.5 hours Actual units produced 3,800 units Actual rate per hour $5.50 Use the following data to find the direct labor cost variance. Direct labor standard (4 hrs. @ $5/hr.) $20 per unit Actual hours worked per unit 3.5 hours Actual units produced 3,800 units Actual rate per hour $5.50 Use the following data to find the direct labor cost variance.Explanation / Answer
direct labor cost variance = actual quantity*actual rate - actual quantity*standard rate
actual units produced = 3800 units. actual hours per unit = 3.5 hours per unit. actual hours = 3800 units*3.5 hours = 13,300 hours
actual rate = $5.5 per hour. standard rate = $5 per hour
variance (as per the formula given above) = 13,300 hours*$5.5 per hour - 13,300 hours*$5 per hour
= 73,150 - 66,500 = $6,650 (unfavorable).
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.