Question
Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.8 hours of labor per pair of shoes. During August, Sole
Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.8 hours of labor per pair of shoes. During August, Sole Purpose Shoe Company incurred actual direct labor costs of $66,066 for 7,260 hours of direct labor in the production of 2,200 pairs of shoes.
Complete the following table, showing the direct labor variance relationships for August for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable variance, and a positive number for an unfavorable variance.
Actual Cost | Standard Cost | |||||||||
Actual Hours | X | Actual Rate | Actual Hours | X | Standard Rate | Standard Hours | X | Standard Rate | ||
X | X | |||||||||
= | = | = | ||||||||
Direct Labor Variance: | Direct Labor Variance: | |||||||||
Total Direct Labor Variance: | ||||||||||
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