Question
1. The standard labor rate per hour is $17.50. The standard labor-hours allowed per unit of finished goods is 3 hours. The actual quantity of
1. The standard labor rate per hour is $17.50. The standard labor-hours allowed per unit of finished goods is 3 hours. The actual quantity of labor hours worked during the period was 44,600 hours. The total actual direct labor cost for the period was $726,000. The company produced 15,000 units of finished goods during the period.
What is the labor efficiency variance?
2. The variable portion of the predetermined overhead rate is $1.40 per direct labor-hour. The standard labor-hours allowed per unit of finished goods is 3 hours. The actual quantity of labor hours worked during the period was 44,000 hours. The total actual variable manufacturing overhead cost for the period was $63,000. The company produced 15,000 units of finished goods during the period.
What is the variable overhead efficiency variance?
Step by Step Solution
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Step: 1
1 To calculate the labor efficiency variance we need to compare the actual labor hours worked with t...
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
26th edition
128574361X, 978-1305446052, 1305446054, 978-1285743615
