Exercise 21-10 Direct labor variances LO P2

Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.

Use the following information for the Exercises below. (The following information applies to the questions displayed below. A manufactured product has the following information for June. Standard Direct materials Direct labor Overhead Units manufactured (6 1bs. 8 per lb.) (2 hrs. $16 per hr.) (2 hrs. 12 per hr.) $198,000 Actual 48,500 lbs . $8.10 per . 15,700 hrs. $16.50 per hr. 8,000 Exercise 21-10 Direct labor variances LO P2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is t unfavorable AH- Actual Hours SH-Standard Hours AR-Actual Rate SR Standard Rate Actual Cost Standard Cost