Question
The following information applies to the questions displayed below.] A manufactured product has the following information for June. Standard Actual Direct materials 5 lbs. @
The following information applies to the questions displayed below.]
A manufactured product has the following information for June.
| Standard | Actual | |||
| Direct materials | 5 lbs. @ $8 per lb. | 40,000 | lbs. @ $8.20 per lb. | |
| Direct labor | 2 hrs. @ $16 per hr. | 15,400 | hrs. @ $16.50 per hr. | |
| Overhead | 2 hrs. @ $12 per hr. | $ | 195,800 | |
| Units manufactured | 7,900 | |||
Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.) AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate
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Modern Analytical Auditing Practical Guidance For Auditors And Accountants
Authors: Thomas Mckee
1st Edition
0899303544, 978-0899303543
