Question
After evaluating Null Companys manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $16.70 per hour
After evaluating Null Companys manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $16.70 per hour for the labor rate. During October, the company uses 14,000 hours of direct labor at a $236,600 total cost to produce 7,300 units of product. In November, the company uses 23,700 hours of direct labor at a $402,900 total cost to produce 7,700 units of product. |
(1) | Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. |
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