The following information is presented for the Picas Manufacturing Company. Direct labor rate standard is $12.
Question:
The following information is presented for the Picas Manufacturing Company.
• Direct labor rate standard is $12.
• Direct labor efficiency standard is two hours per finished unit.
• Budgeted production is 2,200 finished units.
• Production required 4,560 direct labor hours at a cost of $54,036.
• 2,250 finished units of product were produced.
Required:
a. Determine the direct labor rate variance.
b. Determine the direct labor efficiency variance in dollars.
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Related Book For
Introduction To Management Accounting A User Perspective
ISBN: 9780130327505
2nd Edition
Authors: Michael L Werner, Kumen H Jones
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