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Standard Hours Standard Rate per Hour Standard Cost 24 minutes $5.40 $2.16 During August, 8,460 hours of direct labor time were needed to make 19,400

Standard Hours Standard Rate per Hour Standard Cost
24 minutes $5.40 $2.16

During August, 8,460 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $43,992 for the month.

Required:
1.

According to the standards, what direct labor cost should have been incurred to make 19,400 units of the Jogging Mate? By how much does this differ from the cost that was incurred?

2.

Break down the difference in cost from (1) above into a labor rate variance and a labor efficiency variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect

Labor rate variance
Labor efficiency variance

The budgeted variable manufacturing overhead rate is $4.7 per direct labor-hour. During August, the company incurred $45,684 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.

Variable overhead rate variance
Variable overhead efficiency variance

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