Paradise Corporation has determined a standard labor cost per unit of $12.70. On

Question

Paradise Corporation has determined a standard labor cost per unit of $12.70. One hour times $12.70 per hour. Last month Paradise incurred 2150 direct labor hours for which it paid $26,230. The company also produced and sold 2200 units during the month.

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History Bookma my.utrgv.edu | Home x C? | ? ezto.rnheduca ti Tools He CH9 Quiz E] my.utrgv.eduALGEBRALogin ? Search everything on.. "90%.. Il a search (494 unread)-mikewa. utz Instruct ons: help Question 5 (of 10) Time remaining:04529 velue: ?00points Paradise Corp. has determined a standard labor cost per unit of $12.70 1 hour $12,70 per hour, Last month Paradlse Incurred 2150 direct labor hours for which it pald $26,230. The company a'so produced and sold 2.200 units during the month Calculate the direct labor rate, efficiency, and spending varlances. (Round your intermediate celculations to 2 decimal places. Indicate the effect of each variance by selecting F for favorable." or unfavorable.) Direct Labor Rate Variance Direct Labor Efficiency Variance Total Direct Labor Spending Variance

Explanation / Answer

Direct labour rate variance = (12.70*2150-26230) = 1075 F

Direct labour efficiency variance = (2200*1-2150)*12.70 = 635 F

Direct labour spending variance = (2200*12.70-26230) = 1710 F

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