Question
Standard Costs and Variances Gala Enterprises reports the following information regarding the production on one of its products for the month. Direct labor standard (2
Standard Costs and Variances
Gala Enterprises reports the following information regarding the production on one of its products for the month.
Direct labor standard (2 hrs. @ $26/hr.) | $52 per finished unit |
Actual direct labor hours | 88,400 hrs. |
Actual finished units produced | 52,000 units |
Actual cost of direct labor | $2,360,280 |
Requirement 1:
Compute the direct labor cost variance and identify as either F for favorable or U for unfavorable.
Cost variance = , F/U
Requirement 2:
Compute the direct labor rate variance and identify as either F for favorable or U for unfavorable.
Rate variance = , F/U
Requirement 3:
Compute the direct labor efficiency variance and identify as either F for favorable or U for unfavorable.
Efficiency variance = , F/U
Please show your calculations for the previous questions.
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