Question
Delmar Inc. uses a standard cost system. Labor standards are 2.1 hours per widget at $9.40 per hour. During August, Delmar Inc. paid its workers
| Delmar Inc. uses a standard cost system. Labor standards are 2.1 hours per widget at $9.40 per hour. During August, Delmar Inc. paid its workers $156,170 for 16,400 hours. Delmar Inc. produced 8,600 widgets during August. |
| a. | Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) |
| b. | Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) |
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Uniform Administrative Requirements Cost Principles And Audit Requirements For Federal Awards A Handbook For Institutions Of Higher Education And State And Local Governments
Authors: Andrew Shepard-Smith
1st Edition
1505298482, 978-1505298482
