Question
2. Madden Corporation manufactures t-shirts, which is its only product. The standards for t-shirts are as follows: Standard direct labor cost per hour $17 Standard
2. Madden Corporation manufactures t-shirts, which is its only product. The standards for t-shirts are as follows:
Standard direct labor cost per hour | $17 |
Standard direct labor hours per t-shirt | 0.6 |
During the month of January, the company produced 1,250 t-shirts. Related production data for the month is as follows:
Actual direct labor hours | 770 |
Actual direct labor cost incurred | $13,000 |
2a. What is the direct labor rate variance for the month? Is it favorable or unfavorable?
2b. What is the direct labor efficiency variance for the month? Is it favorable or unfavorable?
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