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Direct Labor Variances Ada Clothes Company produced 14,000 units during April, The Cutting Department used 2,700 direct labor hours an actual rate of $14.10 per
Direct Labor Variances Ada Clothes Company produced 14,000 units during April, The Cutting Department used 2,700 direct labor hours an actual rate of $14.10 per hour. The Sewing Department used 4,50 direct labor hours at an actual rate of $13.50 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $14.00. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 hour per unit respectively, a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Cutting Department Sewing Department Direct Labor Rate Variance 270 unfavorable Direct Labor Time Variance Unfavorable Total Direct Labor Cost Variance b. The two departments have opposite results. The cutting Department has an unfavorable rate variance and an favorable time variance, resulting in a total favorable con variance. In contrast, the Sewing Department has a(n) favorable rate variance but has a[n) unfavorable time variance, resulting in a total unfavorable cost variance
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