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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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