Question
A manufactured product has the following information for June. Standard Actual Direct materials 5 lbs. @ $8 per lb. 36,500 lbs. @ $8.20 per lb.
A manufactured product has the following information for June.
| Standard | Actual | |||
| Direct materials | 5 lbs. @ $8 per lb. | 36,500 | lbs. @ $8.20 per lb. | |
| Direct labor | 3 hrs. @ $16 per hr. | 21,300 | hrs. @ $16.50 per hr. | |
| Overhead | 3 hrs. @ $11 per hr. | $ | 243,900 | |
| Units manufactured | 7,200 | |||
Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.) AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate
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Accounting
Authors: Carl S. Warren, James M. Reeve, Philip E. Fess
20th Edition
0324025424, 978-0324025422
