Logen Construction builds standard prefabricated wooden frames for walls. Each frame requires five direct labor hours and

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Logen Construction builds standard prefabricated wooden frames for walls. Each frame requires five direct labor hours and the standard hourly direct labor rate is $ 18. During July, the company produced 670 frames and worked 3,310 direct labor hours. Payroll records indicate that workers earned $ 60,407.50.

a. What were the standard hours for July production?

b. What was the actual hourly wage rate?

c. Calculate the direct labor variances.


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Cost Accounting Foundations and Evolutions

ISBN: 978-1111971724

9th edition

Authors: Michael R. Kinney, Cecily A. Raiborn

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