Question
Crane Family Instruments makes cellos. During the past year, the company made 6,350 cellos even though the budget planned for only 5,500. The company paid
Crane Family Instruments makes cellos. During the past year, the company made 6,350 cellos even though the budget planned for only 5,500. The company paid its workers an average of $20 per hour, which was $0.50 higher than the standard labor rate. The production manager budgets 4 direct labor hours per cello. During the year, a total of 24,320 direct labor hours were worked. (a) Calculate the direct labor rate and efficiency variances. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Direct labor rate variance | $enter the direct labor rate variance in dollars | select an option FavorableNot ApplicableUnfavorable | |
---|---|---|---|
Direct labor efficiency variance | $enter the direct labor efficiency variance in dollars | select an option Not ApplicableUnfavorableFavorable |
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