Question
Labor Rate and Efficiency Variances Frasco Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hours. During the month of April,
Labor Rate and Efficiency Variances
Frasco Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hours. During the month of April, 750,000 bottles were produced using 21,000 labor hours @ $10.00. The standard wage rate is $9.50 per hour.
Required:
Calculate the labor rate and efficiency variances using the columnar and formula approaches.
| Labor rate variance | $
|
| Labor efficiency variance | $
|
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Fundamental Accounting Principles
Authors: Larson Kermit, Tilly Jensen
Volume I, 14th Canadian Edition
71051503, 978-1259066511, 1259066517, 978-0071051507
