: ACG 2071 × Connect Secure https//newconnect.mheducation.com/flow/connect.html

Question

: ACG 2071 × Connect Secure https//newconnect.mheducation.com/flow/connect.html r 21 0 Required information The following information applies to the questions displayed below) A manufactured product has the following information for June Direct materials Direct labor (7 1bs. 58 per 1b.) (2 hrs. $17 per hr) (2 hrs.$13 per hr. $286,880 54, 389 1bs. 8.29 per 1b 15,890 hrs.$17.40 per hr. Units manufactured 7,700 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable AH Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate Prey8of 13 Next> ype here to search

Explanation / Answer

Standard hours = Actual units x Standard hours per unit = 7,700 x 2 = 15,400 hours

Actual hours = 15,000 hours

Direct labour rate variance = Actual Hours x (Standard Rate - Actual Rate) = 15,000 (17 - 17.40) = 6,000 (unfavourable)

Direct labour efficiency variance = Standard rate x (Actual hours - Standard hours)

= 17 x (15,000 - 15,400) = 6,800 (Favourable)

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

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