The direct labor rate standard for Calspan Manufacturing is ($18.50) per direct labor hour. The direct labor
Question:
The direct labor rate standard for Calspan Manufacturing is \($18.50\) per direct labor hour.
The direct labor efficiency standard is six minutes or “0 of an hour per finished unit. Last month, the company completed 105,650 units of product using 10,400 direct labor hours at an actual cost of $191,360.
Required:
a. According to the appropriate standard, how much should the company have paid for the 10,400 actual direct labor hours?
b. Determine the direct labor rate variance.
c. According to the appropriate standard, how many hours of direct labor should it have taken to produce the 105,650 units?
d. Determine the direct labor efficiency variance in hours.
e. Determine the direct labor efficiency variance in dollars.
f. Appendix: Prepare a journal entry to record the direct labor and the direct labor rate and efficiency variances.
Step by Step Answer:
Introduction To Management Accounting A User Perspective
ISBN: 9780130327505
2nd Edition
Authors: Michael L Werner, Kumen H Jones