Question

Paradise Corp. has determined a standard labor cost per unit of $8.00 (1 hour * $8.00 per hour). Last month, Paradise incurred 1,200 direct labor hours for which it paid $9,000. The company also produced and sold 1,250 units during the month. Calculate the direct labor rate, efficiency, and spending variances. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Direct Labor Rate Variance Direct Labor Efficiency Variance Total Direct Labor Spending Variance

Answer 1

Answer Standand 8 per unit l2s0 unuls K i hour standand hbun CsH) Rso hou Actual houk a l200 hbus 49000 ACtuau rat = 4 4.S por unit 7 CAR) (200 hM Direct labour rate vantance Actuai hous xStandand fke-Actual rate) 1200 hous x8 - $4C 600 Favounable 11 2 Drect labour Efficierncy anance Standard raex (standard hous Actual houu pso hous - 200 houn) $ 5hou 400 Favourable (3) Drect lakbur Spending Valance = SRXSH)-CARXAH) 8x 12s hou) - 4-x 200 hous) lo,000-9000 uooo Eavouoable Tuanls