Question
QS 8-11 (Algo) Direct labor rate and efficiency varlances LO P3 A company reports the following information for its direct labor. Actual hours of
QS 8-11 (Algo) Direct labor rate and efficiency varlances LO P3 A company reports the following information for its direct labor. Actual hours of direct labor used Actual rate of direct labor per hour Standard rate of direct labor per hour Standard hours of direct labor for units produced AH Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate 70,000 $ 16 $ 14 72,000 Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable. Actual Cost AH AR X Direct labor rate variance Direct labor efficiency variance Total direct labor variance $ AH X SR x O Unfavorable 0 Favorable Unfavorable S Standard Cost SH SR
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