Question
James has the following information regarding his use of direct labor in a recent period: Total direct labor hours worked (AQ) 30,000 Total units manufactured
James has the following information regarding his use of direct labor in a recent period:
| Total direct labor hours worked (AQ) | 30,000 |
| Total units manufactured | 8,000 |
| Real hourly wage rate (AP) | $16 |
| Standard cost data: | |
| Hourly wage rate (SP) | $18 |
Standard hours per unit are 4 |
Required :
1. Calculate the labor efficiency variance for the period.
2. Calculate the labor rate variance for the period.
Step by Step Solution
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Step: 1
PART1 Units manufactured Multiply Standard direct labor hours per unit Answer Total standard hours ...
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
5th edition
73526940, 978-0073526942
