I need help finding standard hours allowed thanks Requirement 1. Compute the dir
ID: 2530468 • Letter: I
Question
I need help finding standard hours allowed thanks
Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency Abbreviations used: DLDirect labor) Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. Actual hours Standard rate Actual rate ) = DL rate variance ] ) =| 4560 11 F 4560 x ( 15.00 14.00 Now compute the direct labor efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. x Standard hours allowed x ( Standard rate Actual hours ) DL efficiency variance 15.00 4560Explanation / Answer
Ans:
Standard hours allowed= Actual production of flower pots*standard direct labor hour required per pot
= 1900*2= 3800 hours
Direct labor efficiency variance=standard rate(standard hours allowed-actual hours)
= $15(3800-4560)=$11400 “U”
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