T-shirt Design lab Dex, OACC 212 MASTER xye:CengageNowv2[Onlix eAssignment/takeA
ID: 2561866 • Letter: T
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T-shirt Design lab Dex, OACC 212 MASTER xye:CengageNowv2[Onlix eAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take;&inprogress-false; eBook Direct Labor Variances Bellingham Company produces a product that requires 8 standard direct labor hours per unit at a sta ndard hourly rate of $21 per hour. If 4,000 units used 30,700 hours at an hourly rate of $21.84 per hour, what is the direct labor (a) rate variance, (b) time varilance, and () cost variance? Enter a favorable varlance as a negative number using a minus sign and an unfavorable variance as a positive number a. Direct labor rate variance b. Direct labor time variance c. Direct labor cost variance 10-22 PMExplanation / Answer
a) Direct labour rate variance = (standard rate-actual rate)actual hours
= (21-21.84)30700
Direct labour rate variance = 25788 unfavourable
b) Direct labour effiiciency variance = (standard hours-actual hours)standard rate
= (4000*8-30700)21
Direct labour efficiency variance = -27300 Favourable
c) Direct labour cost variance = standard cost-actual cost
= (4000*8*21)-(30700*21.84)
Direct labour cost variance = -1512 favourable
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