Nicole Clothing manufactures embroidered jackets. It has reported the following standards for direct material and direct labor for the year:
Standard DM quantity per unit: 3 square feet
Standard cost per sq. foot: $3.80/sq. ft
Standard DL quantity per unit: 2 hours per unit
Standard DL cost per hour: $9.50/hr
Actual production was 14,000 jackets, with 33,600 total square feet used at an actual cost of $3.90/s q. ft. Total direct labor hours incurred were 25,720 at a total cost of $249,484. Compute the direct labor rate variance.
A.
$21,660 F
B.
$5,144 F
C.
$21,660 U
D.
$5,144 U
Labor rate variance
= (SR-AR) *ALH
= (9.50 - 249,484/25,720) * 25,720
= (9.50 - 9.70) * 25,720
= 5144 U
Nicole Clothing manufactures embroidered jackets. It has reported the following standards for direct material and direct...
Nicole Clothing manufactures embroidered jackets. It has reported the following standards for direct material and direct labor for the year: Standard DM quantity per unit: 3 square feet Standard cost per sq. foot: $3.80/sq. ft Standard DL quantity per unit: 2 hours per unit Standard DL cost per hour: $9.50/hr Actual production was 14,000 jackets, with 33,600 total square feet used at an actual cost of $3.90/s q. ft. Total direct labor hours incurred were 25,720 at a total cost of...
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