Question
After evaluating Null Companys manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $15.30 per hour
After evaluating Null Companys manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $15.30 per hour for the labor rate. During October, the company uses 11,100 hours of direct labor at a $172,050 total cost to produce 5,900 units of product. In November, the company uses 22,300 hours of direct labor at a $347,880 total cost to produce 6,300 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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