2 Your answer is partially correct. Try again. Lewis Company\'s standard labor c

Question

2 Your answer is partially correct. Try again. Lewis Company's standard labor cost of producing one unit of Product DD is 3.7 hours at the rate of $12.9 per hour. During August, 40,300 hours of labor are incurred at a cost of $13,10 per hour fto Compute the total labor varia Total labor varianice sl 17219 Unfavorable Compute the labor price and quantity variances Labor price varilance Unfavorable Labor quantity wariance l 9159 Unfavorable Compute the labor price and quantity variances, assuming the standard is 3.9 hours of direct labor at $13.30 per hour. Labor price variance Labor quantity variance Favorable 18733 avorable

Explanation / Answer

Ans C. Labour price/rate variance = (Standard rate - Actual rate)*Actual hours

Labour price variance = ($12.90 - $13.10)*40,300 = -8060 unfavourable

Labour quantity variance = (Actual hours - Standard hours)*Standard rate

Labour quantity variance = (40,300 hrs - 10,700*3.7 hrs)*12.90

Labour quantity variance = (40,300 hrs - 39,590 hrs)*12.90 = 9159 Favourable

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