Exercise 15-12 (Algo) Performance reporting and flexible budgeting LO 15-4, 15-5

For the stamping department of a manufacturing firm, the standard cost for direct labor is $17 per hour, and the production standard calls for 2,500 stampings per hour. During February, 149 hours were required for actual production of 400,000 stampings. Actual direct labor cost for the stamping department for June was $2,682.

Required:

Complete the performance report for February.

Calculate the direct labor efficiency and rate variances for February.

Could reporting the efficiency and rate variances to the appropriate managers improve control over the stamping department's direct labor?