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Delmar Incorporated uses a standard cost system. Labor standards are 2.00 hours per widget at $14.80 per hour. During August, Delmar Incorporated paid its
Delmar Incorporated uses a standard cost system. Labor standards are 2.00 hours per widget at $14.80 per hour. During August, Delmar Incorporated paid its workers $254,790 for 17,100 hours. Delmar Incorporated produced 8,750 widgets during August. Required: a. Calculate the direct labor rate variance. Note: 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. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the direct labor spending variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). a. Rate Variance b. Efficiency Variance c. Spending Variance
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