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Michaelsen Inc. establishes standard rates to plan and control its production. They have determined their direct labour rate is $22.50 per hour and each unit
Michaelsen Inc. establishes standard rates to plan and control its production. They have determined their direct labour rate is $22.50 per hour and each unit produced requires a standard of 3.25 direct labour hours.
In 2019, Michalesen actually incurred 8,375 direct labour hours to produce 2,500 units. They incurred a total of $192,625 in direct labour hours.
Required: Calculate labour rate variance, labour efficiency variance and total labour variance.
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