Answer to Question 1:
Direct labor efficiency variance = Standard labor rate per hour
* (Actual labor hours worked - Standard labor hours allowed)
$15,470 = $17.00 * (13,600 - Standard labor hours allowed)
910 = 13,600 - Standard labor hours allowed
Standard labor hours allowed = 12,690
Standard labor hours allowed = Actual units produced * Standard
labor hours per unit
12,690 = Actual units produced * 15
Actual units produced = 846
Answer to Question 2:
Master Budget:
Direct labor cost per unit = Direct labor cost / Budgeted units
sold
Direct labor cost per unit = $48,720 / 4,060
Direct labor cost per unit = $12.00
Flexible Budget:
Direct labor cost = Direct labor cost per unit * Budgeted units
sold
Direct labor cost = $12.00 * 4,380
Direct labor cost = $52,560
Swan Company has a direct labor standard of 15 hours per unit of output. Each employee...
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