Question

Martin, Inc. manufactures lead crystal glasses. The standard direct labor time is 05 hour per glass, at a cost of $18 per hour. The actual results for one month's production of 6.500 glasses were 02 hours per glass at a cost of $11 per hour Calculate the direct labor ces variance and the direct labor efficiency variance Select the formula, then enter the amounts and compute the cost variance for direct labor and identify whether the variance is favorable (F) or unfavorable (U) ) X - Direct Labor Cost Variance Select the formula, then enter the amounts and compute the efficiency variance for direct labor and identify whether the variance is favorable (F) or unfavorable (U) - Direct Laboriciency Variance

Answer 1

Actual Cost AH 1300 * AR $11.00 14,300 AH 1300 Standard Cost SH SR 3250 * $18 58,500 SR $18 23,400 * 1300 AH = Actual Hours = Actual production * No. of hours required per unit = 6500 * 0.2 = SH = Units manufactured * Standard hours per unit = 6500 * 0.5 hrs = 3250 AR = Actual Rate = $ 11 SR = Standard Rate = $ 18 = Direct labour rate variance Direct labour efficiency variance Direct labour cost variance AH* SR - AH * AR = $ 23400 - $ 14300 = SH* SR - AH * SR = $58500-$23400 = Standard cost - Actual Cost = $58500 - 14300 = $ $ $ 9,100F 35,100F 44,200 F =