Question
Sweetie Sippies scheduled 500 sippy cups for production during January, with the following budgeted costs of production. Direct Materials = 2.5 units of plastic per
Sweetie Sippies scheduled 500 sippy cups for production during January, with the following budgeted costs of production.
Direct Materials = 2.5 units of plastic per cup at 1.50 per unit
Direct Labor = .10 labor hours per cup at $13 per hour
Variable Overhead = .10 labor hours per cup @11.50 per hour
Fixed Overhead = $3,200 per month
For the month of January, the company actually produced 480 cups using 1,150 units of plastic purchased at $1.75 per unit, and 45 direct labors at a rate of $12.50 per hour. It also incurred actual variable overhead at a rate of $13 per direct labor hour, and fixed overhead of $3,150 for the month.
What is the company's Direct Labor Efficiency Variance for the month of January?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started