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Use the following cost information to calculate the direct labor rate and efficiency variances and indicate whether they are favorable or unfavorable. Actual costs and
Use the following cost information to calculate the direct labor rate and efficiency variances and indicate whether they are favorable or unfavorable. Actual costs and quantities:
Direct labor cost incurred .. $360,000
Direct labor hours used .. 20,000 hours
Units produced .. 45,000 units
Standard costs and quantities:
Direct labor rate per hour .. $16.50
Hours to produce one unit . 0.5 hours
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