3 Direct Labor (DL) Variances Beautiful Beaches, Ltd has set the following standards for direct labor (DL) costs per unit for the good it manufactures Standard Hours 0 75 DL hours per unit Standard Rate $19 per DL hour During the month of November, the firm incurred the following actual DL costs to produce 8,940 units Actual total Hours 7,152 total DL hours Actual total DL cost $126,948 a Calculate the DL cost variance Indicate whether this variance is favorable (F) or unfavorable (U) b Calculate the DL rate variance Indicate whether this variance is favorable (F) or unfavorable (U) c Calculate the DL efficiency variance Indicate whether this variance is favorable (F) or unfavorable (U)

Question

3  Direct Labor (DL) Variances  Beautiful Beaches, Ltd  has set the following standards for direct labor (DL) costs per unit for the good it manufactures  Standard Hours  0 75 DL hours per unit Standard Rate $19 per DL hour During the month of November, the firm incurred the following actual DL costs to produce 8,940 units  Actual total Hours  7,152 total DL hours Actual total DL cost $126,948 a Calculate the DL cost variance Indicate whether this variance is favorable (F) or unfavorable (U)  b Calculate the DL rate variance Indicate whether this variance is favorable (F) or unfavorable (U)  c Calculate the DL efficiency variance Indicate whether this variance is favorable (F) or unfavorable (U)

Accepted Answer

The Answer is in the image, click to view ...

Question

3. Direct Labor (DL) Variances: Beautiful Beaches, Ltd. has set the following standards for direct labor (DL) costs per unit for the good it manufactures:

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Intermediate Accounting

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question