A company provides a service for which these are the standard data:

$$ Direct Labour Costs: $2$ DLH at $50$ EUR$/$DLH

$$ Manufacturing Overhead:

o Variable: $2$ DLH at $40$ EUR$/$DLH

o Fixed: $2$ DLH at $20$ EUR$/$DLH

$$ Total use of DLH: $10000$ DLH

The actual data for a specific month are as follows:

$$ Price variance direct labour: $45000$ EUR $($U$)$

$$ Efficiency variance direct labour: $60000$ EUR $($U$)$

$$ Actual fixed manufacturing overhead: $600000$ EUR

$$ Actual variable manufacturing overhead: $323000$ EUR

$$ Standard DLH allowed for actual production: $8000$ DLH

 

 

Required:

$1.$ Calculate the actual hourly rate of a DLH$.$

$2.$ Calculate the efficiency variance for the variable manufacturing overhead.

$3.$ Calculate the production$-$volume variance.

The given answer for these questions are,

$1.54\mathrm{.}8913$ EUR$/$DLH

$2.-48000$EUR$($U$)$

$3.-40000$EUR$($U$)$