Question
JaneFon Industries, Inc. (JFI), uses standard costs for direct material and direct labor for planning and control purposes. Data below pertains to one of their
JaneFon Industries, Inc. (JFI), uses standard costs for direct material and direct labor for planning and control purposes. Data below pertains to one of their major products, the 10-gallon plastic container.
During June 2019, JFI produced and sold 24,000 containers using 2,700 hours of direct labor at an actual labor rate of $18.The DL price variance for June 2019 was $5,400 (F).The DL efficiency variance for June 2019 was $6,000 (U).
Calculate the standard wage rate per DL-hour and the standard quantity of direct labor allowed per container that were used in variance analysis.
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
