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Lily Music manufactures harmonicas. Lily uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and only partial data
Lily Music manufactures harmonicas. Lily uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and only partial data for October exist. Lily 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 rate variance of $0.70 per hour. The standard direct labor hours for actual October outputs were 5,850. Read the requirements. Standard direct labor rate per hour 9.00 - - Favorable labor rate variance 0.70 Actual direct labor rate per hour 8.30 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).) Lily 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
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