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WHlav DLUIS Weygandt, Managerial Accounting, Be WileyPLUS Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Unit 8 Lab 330 1902A Question 1 Question 2 Question 3 Question 2 Lewis Company's standard labor cost of producing one unit of Product DD is 3.70 hours at the rate of $10.60 per hour. During August, 40,400 hours of labor are incurred at a cost of $10.75 per hour to produce 10,800 units of Product DD. (a) Compute the total labor variance. Review Score Review Results by Study Objective Total labor variance (b) Compute the labor price and quantity variances. Labor price variance Labor quantity variances (c) Compute the labor price and quantity variances, assuming the standard is 4.10 hours of direct labor at $10.95 per hour. Labor price variance Labor quantity variances Click if you would like to show Work for this question: Open Show Work Question Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

Solution A Total Labor variance = (Actual Hours & Actual rate) - (standard Hours - Standard rate) 5 ( 40400 X 10.25) - ( 39960 X 10.60) = 434300 - 423576 = 10724 U * standard Hours = 10800 units X 3.70 hours = 39960 hours B) Labor price variance = (Actual rate - Standard rate) x Actual hours = (10.75 - 10.60) X 40400 = 6060 U Labor Quantity variance = (Actual Hours - Standard hours) y Standard rate = ( 40400 - 39960) x 10.60 = 4664 U

C) Labor price varlance = (Actual rate - Standard rate) & Actual hours C1Q-75 – 10.95) X 40400 = 80%OF Labor quantity variance = (actual hours - Standard hours) x Standard rate (40400 - 44280) x 110.95 = = 42 486 F * Standard Hours = 10800 units X 4.10 hours 44280