Question

Required information [The following information applies to the questions displayed below.) A manufactured product has the following information for June Direct materials Direct labor Overhead Units manufactured Standard 5 lbs. @ $8 per lb. 3 hrs. @ $17 per hr. 3 hrs. @ $13 per hr. Actual 42,100 lbs. @ $8.20 per lb. 24,500 hrs. @ $17.50 per hr. $329,000 8,300 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 Actual Cost Standard Cost $ 0 S 0 Direct labor rate variance Direct labor efficiency variance Direct materials price variance $ 0 Unfavorable Favorable $ 12,250 Favorable

Answer 1

Actual Cost Standard cost SR AH 24500 AR $17.50 AH 24500 SH 24900 SR $17.00 $17.00 $428,750.00 $416,500.00 $423,300.00 $12,250.00 $ 6,800.00 Direct Labour rate variance Direct labour efficiency variance Total Direct labour variance $ 12,250.00 Unfavourable $ 6,800.00 Favourable $ 5,450.00 Unfavourable Note : Standard Hours = 8300 units* 3 hrs = 24,900 Hours