Lewis Companys standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of $12.50 per hour. During August, 42,600 hours of labor are incurred at a cost of $12.65 per hour to produce 13,200 units of Product DD. (a) Compute the total labor variance.

Total labor variance

_________________ (b) Compute the labor price and quantity variances, and state whether they are favorable or unfavorable.

Labor price variance

Labor quantity variance_

(c) Compute the labor price and quantity variances, assuming the standard is 3.50 hours of direct labor at $12.85 per hour.

Labor price variance

Labor quantity variance ____________________

^*

Question

Lewis Companys standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of $12.50 per hour. During August, 42,600 hours of labor are incurred at a cost of $12.65 per hour to produce 13,200 units of Product DD. (a) Compute the total labor variance.

Total labor variance

_______________________________________ (b) Compute the labor price and quantity variances, and state whether they are favorable or unfavorable.

Labor price variance ______________________________________
Labor quantity variance_________________________________

(c) Compute the labor price and quantity variances, assuming the standard is 3.50 hours of direct labor at $12.85 per hour.

Labor price variance ______________________________________
Labor quantity variance __________________________________________		^*

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Question

Lewis Companys standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of $12.50 per hour. During August, 42,600

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