Question
Pagley Company's standard labour costs of producing one unit of product DD is 4 hours at the rate of $12.00 per hour. During August, 40,800
Pagley Company's standard labour costs of producing one unit of product DD is 4 hours at the rate of $12.00 per hour. During August, 40,800 hours of labour are incurred at a cost of $12.10 per hour to produce 10,000 units of product DD. a) Calculate the total direct labour variance: $ b) Is the total direct labour variance favourable or unfavourable?
c) Calculate the direct labour price variance: $
d) Is the direct labour price variance favourable or unfavourable?
e) Calculate the direct labour quantity variance: $ f) Is the direct labour quantity variance favourable or unfavourable?
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