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Laura's Music manufactures harmonicas laura uses standard costs to judge performance Recently, a clerk mistakenly threw away some of the records, and only partial data
Laura's Music manufactures harmonicas laura uses standard costs to judge performance Recently, a clerk mistakenly threw away some of the records, and only partial data for November exist Laura knows that the total direct labor variance for the month was $360 F and that the standard labor rate was $9 per hour A recent pay cut caused a favorable labor price variance of $0 70 per hour The standard direct labor hours for actual November outputs were 5 850 Requirements Find the actual number of direct labor hours worked during November First, find the actual direct labor rate per hour Then, determine the actual number of direct labor hours worked by setting up the computation of the direct labor variance as given Compute the direct labor rate and efficiency variances. Do these variances suggest that the manager may have made trade-offs? Explain
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