Standard Direct Labor Cost

The controller at your shoemaking company has determined that under normal conditions, you pay your employees $8.60 per hour, and it will take 2.8 hours of labor per pair of shoes. Given this information, calculate the standard cost of labor per pair of shoes. If required, round the standard labor per pair of shoes to the nearest cent.

Manufacturing Costs Standard Price x Standard Hours per Pair = Standard Cost per Pair

Direct Labor $8.60 per hour 2.8 hours $24.08

Actual Direct Labor Cost

During November, your shoe-making company incurred actual direct labor costs of $69,069 for 7,590 hours of direct labor in the production of 2,225 pairs of shoes. Given this information, calculate the actual cost of labor per hour. If required, round the actual cost of labor per hour to the nearest cent.

Manufacturing Costs Actual Total Cost / Actual Total Hours = Actual Cost per Hour

Direct labor $69,069 7,590 $9.1

Actual Hours x Actual rate Actual hours x Stadard rate Stadard hours x Standard Rate

7590 X $9.1 7590 x $________ ____________ x $____________

$______ = $________ = $____________

Direct Labor Rate Variance Direct labor Time variance

$_______ - $________ $________-$_________

= $_______ = $_______

Total Labor Cost Variance

$_______ - $________

= $_________