Question
Case Company made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard. Their employees were paid
Case Company made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard.
Their employees were paid $15.75 per hour for June. The standard is 15.50 per hour.
1. Calculate the direct labor rate variance for June, and indicate if the variance is favorable or unfavorable.
2. Calculate the direct labor hour variance for June, and indicate if the variance is favorable or unfavorable.
3. Calculate the total direct labor cost variance for June, and indicate if the variance is favorable or unfavorable.
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