Answer:
Explanation:
The computation is shown below:
For October month:
The computation of the direct labor price variance is shown below:
= Actual Hours × (Actual rate - standard rate)
= 11,500 × ($180,550 ÷ 11,500 hours - $15.50 per hour)
= 11,500 × ($15.70 - $15.50)
= $2,300 unfavorable
The computation of the direct labor efficiency variance is shown below:
= Standard Rate × (Actual hours - Standard hours)
= $15.50 per hour × (11,500 hours - 6,100 units × 2 hours)
= $15.50 per hour × 700 hours
= $10,850 favorable
The computation of the total direct labor cost variance is shown below:
= Direct labor rate variance + direct labor efficiency variance
= $2,300 unfavorable + $10,850 favorable
= $8,550 favorable
For November month:
The computation of the direct labor price variance is shown below:
= Actual Hours × (Actual rate - standard rate)
= 22,500 × ($355,500 ÷ 22,500 hours - $15.50 per hour)
= 22,500 × ($15.80 - $15.50)
= $6,750 unfavorable
The computation of the direct labor efficiency variance is shown below:
= Standard Rate × (Actual hours - Standard hours)
= $15.50 per hour × (22,500 hours - 6,500 units × 2 hours)
= $15.50 per hour × 9,500 hours
= $147,250 favorable
The computation of the total direct labor cost variance is shown below:
= Direct labor rate variance + direct labor efficiency variance
= $6,750 unfavorable + $147,250 favorable
= $140,500 favorable
