Question
A manufactured product has the following information for June. Standard Actual Direct materials (6 lbs. @ $7 per lb.) 46,700 lbs. @ $7.10 per lb.
A manufactured product has the following information for June.
| Standard | Actual | |||
| Direct materials | (6 lbs. @ $7 per lb.) | 46,700 | lbs. @ $7.10 per lb. | |
| Direct labor | (2 hrs. @ $16 per hr.) | 15,100 | hrs. @ $16.60 per hr. | |
| Overhead | (2 hrs. @ $13 per hr.) | $ | 207,100 | |
| Units manufactured | 7,700 | |||
AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate
Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.
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Construction Guide Accounting And Knowledge Based Audits
Authors: CPA Eric P. Wallace
1st Edition
0808020870, 978-0808020875
