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Lemke Music manufactures harmonicas. Lemke uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and only partial data
Lemke Music manufactures harmonicas. Lemke uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and only partial data for February exist. Lemke knows that the total direct labor variance for the month was $390 F and that the standard labor rate was $12 per hour. A recent pay cut caused a favorable labor rate variance of $0.40 per hour. The standard direct labor hours for actual February outputs were 4,600. Read the requirements. Select the formula, then calculate the actual price per hour. - - Standard direct labor rate per hour 12.00 Favorable labor rate variance 0.40 Actual direct labor rate per hour 11.60 S Determine the actual number of direct labor hours worked by setting up the computation of the total direct labor variance as given. (Enter the known amounts, then determine the missing amounts to solve for the actual direct labor hours. Enter the amounts as positive numbers. Label the variance as favorable (F) or unfavorable (U).) Lemke Music Schedule to Compute Actual Direct Labor Hours Flexible budget Flexible Actual for actual output budget variance Direct labor hours Cost per hour Total direct labor cost Flexible budget variance Choose from any list or enter any number in the input fields and then click Check Answer. 2 parts 5 remaining Clear All Check Answer A Requirements 1. Find the actual number of direct labor hours worked during February. 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 total direct labor variance as given. 2. Compute the direct labor rate and efficiency variances. Do these variances suggest that the manager may have made trade-offs? Explain. Print Done
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