Problem

Rett Publishing has a standard wage rate of $23 per hour. Direct labor hours are used to...

Rett Publishing has a standard wage rate of $23 per hour. Direct labor hours are used to allocate overhead to various publishing jobs. Fixed overhead is budgeted at $2.8 million and variable overhead is $19 per direct labor hour. The following data summarize the results of operations for March:

Required:

a. Calculate the overhead efficiency variance for March.

b. What was the total number of standard direct labor hours for March?

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Solutions For Problems in Chapter 13