Question
Direct labour variances and overhead spending variance The following data for Kitchen Tile Company relates to the production of 18 000 tiles during the past
Direct labour variances and overhead spending variance
The following data for Kitchen Tile Company relates to the production of 18 000 tiles during the past month. The entity allocates fixed overhead costs at a standard rate of $19 per direct labour hour.
Direct Labour: Standard cost is 6 tiles per hour at $24 per hour Actual cost per hour was $24.50 Labour efficiency variance was $6720 F Fixed overhead costs: Estimated = $60,000 Actual = $58,720 |
Required
(a) How many actual labour hours were worked to produce the 18 000 tiles?
(b) What is the price variance for direct labour?
(c) What is the budget variance for fixed costs?
No handwritten answer plz
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started