Question

u Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT Do It! Review 23-3 The standard cost of product 5252 includes 1.90 hours of direct labor at $10.90 per hour. The predetermined overhead rate is $22.00 per direct labor hour. During July, the company incurred 4,000 hours of direct labor at an average rate of $11.20 per hour and $81,800 of manufacturing overhead costs. It produced 2,000 units. (a) Compute the total, price, and quantity variances for labor Total labor variance Labor price variance Labor quantity variance (b) Compute the total overhead variance Total overhead variance Click if you would like to Show Work for this question Open Show Work would like to show Work for this content LINK TO TEXT Question Attempts: 0 of 3 used SUBMIT ANSWER leyplus.com/eduger/shared/assignment/test/aglist.uni?id=asnmt2475623#

Answer 1

Part-a

Total Labour Variance= Std Cost- Actal Cost

=(2000*1.9*10.9)-(4000*11.2)=$3380 Unfavourbale

Labour Price Variance=( SR-AR)X Actual Hour

( $10.90-11.20)X4000=$1200 Unfavourable

Labour Quantity Variance= ( Shour-Actual Hour)SR

(( 2000X1.90)-4000)X10.90= $2180 Unfavourable

Part-b:

Total Overhead Valriance= Budgeted Overhead- Actual Overhead

($22X 2000 UnitX 1.90)-$81800=$1800 Favourable