Direct Labor Rate and Efficiency Variances Dunlor Company produces one product w

Question

Direct Labor Rate and Efficiency Variances Dunlor Company produces one product with the following standard costs: Direct materials (3 pounds $2.50) $7.50 Direct labor (1.4 hours $12)16.80 (choose one). 1. The direct labor rate variance is $ 2. The direct labor hours required for actual production at standardis pounds The direct labor efficiency variance is Now make the follewing changes to the Interactive Graph. (choose one). 3. Change the actual direct labor wage rate to $12.60. The direct labor rate variance becomes The direct labor efficiency variance becomes 4. Change the actual direct labor worked from 15,000 to 14,000. The drect labor efficiency variance becomes The drect labor rate variance becomes Continue to change the actual direct labor hours worked used and the actual wage rate to determine how the changes impact the direct labor rate variance and the direct labor efficiency

Explanation / Answer

1) Direct labour rate variance = (12*15600-180000) = 7200 Favorable

2) Direct labour hour for actual production = 10300*1.4 = 14420 hour

Direct labour efficiency variance = (14420-15600)*12 = 14160 Unfavorable

3) Direct labour rate variance = (12-12.60)*15600 = 9360 Unfavorable

Direct labour efficiency variance = (14420-15600)*12 = 14160 Unfavorable

4) Direct labour efficiency variance = (14420-14000)*12 = 5040 Favorable

Direct labour rate variance = (12-12.60)*14000 = 8400 Favorable

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.