Question
Labor Variances Verde Company produces wheels for bicycles. During the year, 652,000 wheels were produced. The actual labor used was 359,000 hours at $9.60 per
Labor Variances
Verde Company produces wheels for bicycles. During the year, 652,000 wheels were produced. The actual labor used was 359,000 hours at $9.60 per hour. Verde has the following labor standards: 1) $9.90 per hour; 2) 0.48 hour per wheel.
Required:
1. Compute the labor rate variance. $ Favorable
2. Compute the labor efficiency variance. $ Unfavorable
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Auditing A Practical Approach
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren
1st Extended Canadian Edition
1118878418, 9781118878415
