Question
Japan Company produces lamps that require 3 standard hours per unit at a standard hourly rate of $11.50 per hour. Production of 5,700 units required
Japan Company produces lamps that require 3 standard hours per unit at a standard hourly rate of $11.50 per hour. Production of 5,700 units required 16,760 hours at an hourly rate of $11.80 per hour.
What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? Enter favorable variances as negative numbers.
| a. Direct labor rate variance | Favorable/Unfavorable | |
| b. Direct labor time variance | Favorable/Unfavorable | |
| c. Total direct labor cost variance | Favorable/Unfavorable |
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
