After evaluating Null Company\'s manufacturing process, management decides to es

Question

After evaluating Null Company's manufacturing process, management decides to establish standards of 3 hours of direct labor per unit of product and $16.60 per hour for the labor rate. During October, the company uses 21,000 hours of direct labor at a $352,800 total cost to produce 7,200 units of product. In November, the company uses 23,600 hours of direct labor at a $398,840 total cost to produce 7,600 units of product. (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months October Standard Cost Actual Cost AH SR SH SR AH AR 0 o Unfavorable Direct labor rate variance Direct labor efficiency variance Total direct labor variance 0 Favorable avorable November Standard Cost Actual Cost AH SR SH SR AH AR 0 (Unfavorable 0 rUnfavorable Unfavorable Direct labor rate variance Direct labor efficiency variance otal direct labor variance

Explanation / Answer

Calculate labour variance :

October Actual cost Standard cost AH * AR AH * SR SH * SR 21000 * 16.80 21000 * 16.60 21600 * 16.60 4200 9960 Direct labour rate variance 4200 Unfavourable Direct labour efficiency variance 9960 Favourable Total direct labour variance 5760 Favourable

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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