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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

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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 for October exist. Lemke knows that the total direct labor variance for the month was $330 F and that the standard labor rate was $10 per hour. A recent pay cut caused a favorable labor rate variance of $0.50 per hour. The standard direct labor hours for actual October outputs were 5,600. Read the requirements Requirement 1. Find the actual number of direct labor hours worked during October. First, find the actual direct labor price 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. Select the formula, then calculate the actual price per hour. Actual direct labor rate per hour 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 Requirement 2. Compute the direct labor rate and efficiency variances. Do these variances suggest that the manager may have made trade-offs? Explain. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor.) Begin by determining the formula for the price variance, then compute the price variance for direct labor. DL rate variance x Now determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. 1) = DL efficiency variance Choose from any list or enter any number in the input fields and then continue to the next question. ? Requirement 2. Compute the direct labor rate and efficiency variances. Do these variances suggest that the manager may have made trade-offs? Explain. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor.) Begin by determining the formula for the price variance, then compute the price variance for direct labor. xl DL rate variance = X Now determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. x DL efficiency variance x Do these variances suggest that the manager may have made trade-offs? Explain. The direct labor rate variance combined with the direct labor efficiency variance suggests that the manager may have used workers. However, due to the overall net effect, it appears there was Choose from any list or enter any number in the input fields and then continue to the next

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