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Four Seasons Industries has established direct labor performance standards for its maintenance and repair shop. However. some of the labor records were destroyed during a
Four Seasons Industries has established direct labor performance standards for its maintenance and repair shop. However. some of the labor records were destroyed during a recent fire. The actual hours worked during August were 3,500 , and the total direct labor budget variance was $1,820 unfavorable. The standard labor rate was $22.40 per hour, but recent resignations allowed the firm to hire lower-paid replacement workers for some jobs, and this produced a favorable rate variance of $4,900 for August. Required: a. Calculate the actual direct labor rate paid per hour during August. Note: Do not round intermediate calculations. Round your answer to 1 decimal place. b. Calculate the dollar amount of the direct labor efficiency variance for August. Note: Indicate the effect of each variance by selecting " F " for favorable, " U " for unfavorable, and "None" for no effect (i.e., zero variance). c. Calculate the standard direct labor hours allowed for the actual level of activity during August. (Hint: Use the formula for the quantity variance and solve for the missing information.)
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