Problem 10-37 Direct-Labor Variances at Colgate Palmolive Company; Cost Variance Investigation (LO 10-3, 10-4)

The following data pertain to Colgate Palmolive's liquid filling line during the first 10 months of a particular year. The standard ratio of direct-labor hours to machine hours is 4:1. The standard direct-labor rate is $15.78.

Colgate Palmolive: Direct-Labor Efficiency Variance Data*
	Units Produced			Machine Hours			Standard Direct-Labor Hours			Actual Direct-Labor Hours			Direct-Labor Efficiency Variance
January		50,618			172.5			690.00			388.00		$	4,766
February		32,083			107.3			429.20			228.00			3,175
March		185,879			566.0			2,264.00			1,096.00			18,431
April		213,674			723.6			2,894.40			1,516.75			21,739
May		49,090			167.0			668.00			378.00			4,576
June		82,926			246.0			984.00			564.50			6,620
July		36,488			111.0			444.00			297.00			2,320
August		33,763			103.0			412.00			338.50			1,160
September		31,910			103.0			412.00			348.50			1,002
October		28,541			79.0			316.00			186.00			2,051

1. Calculate the standard direc-labort cost for EACH of the 10 months. Show work.

2. Calculate for EACH month, 20 percent of the standard direct labor cost.