Homework due 5 pm Mon 25 May

Assignment

11.25Direct labour variances and overhead spending variance

The following data for Kitchen Tile Company relates to the production of 18000 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 18000 tiles?

(b)What is the price variance for direct labour?

(c)What is the budget variance for fixed costs?