Question
ABC has the following information pertaining to its usage of direct labor in a recent period: Total units manufactured 7,200 Total direct labor hours used
ABC has the following information pertaining to its usage of direct labor in a recent period:
| Total units manufactured | 7,200 |
| Total direct labor hours used | 22,000 |
| Actual wage rate per hour | $15 |
| Standard wage rate per hour | $14 |
| Standard hours per unit of output | 3 |
What is the direct labor efficiency variance for the period? (Be sure to note if it is favorable or unfavorable.)
What is the labor rate variance for the period? (Be sure to note if it is favorable or unfavorable.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Forest Management Auditing
Authors: Lucio Brotto
1st Edition
0367605872, 978-0367605872
