Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Read the requirements. Select the formula, then calculate the actual price per hour. Standard direct labor rate per hour - Favorable labor rate variance =

Read the requirements.
Select the formula, then calculate the actual price per hour.
Standard direct labor rate per hour - Favorable labor rate variance = Actual direct labor rate per hour
$,-,0.00,0.50,=,8.50
Label the variance as favorable (F) or unfavorable (U).)
Mustang Music
Schedule to Compute Actual Direct Labor Hours
Requirements
Find the actual number of direct labor hours worked during February. First, find
the actual direct labor rate per hour. Then, determine the actual number of
direct labor hours worked by setting up the computation of the total direct labor
variance as given.
Compute the direct labor rate and efficiency variances. Do these variances
suggest that the manager may have made trade-offs? Explain.Mustang Music manufactures harmonicas. Mustang uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and only partial data for February exist. Mustang knows that the total direct labor variance for the month was $ 390 F and that the standard labor rate was $ 9 per hour. A recent pay cut caused a favorable labor rate variance of $ 0.50 per hour. The standard direct labor hours for actual February outputs were 5 comma 200.
Read the requirementsLOADING....
Question content area bottom
Part 1
Requirement 1. Find the actual number of direct labor hours worked during February. First, find the actual direct labor price rate per hour. Then, determine the actual number of direct labor hours worked by setting up the computation of the total direct labor variance as given.
Select the formula, then calculate the actual price per hour.
-
=
Actual direct labor rate per hour
-
=
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Theory And Practice

Authors: Arun Kumar & Rachana Sharma

1st Edition

8171567207, 978-8171567201

More Books

Students also viewed these Accounting questions