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Blababa [14]
3 years ago
10

The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. if in producing 1,800 units, the actual direct

labor cost was $48,000 for 3,000 direct labor hours worked, the total direct labor variance is
Business
1 answer:
boyakko [2]3 years ago
3 0
Direct labor variance is the effect of the differences between the wage rate or the number of hours worked in actual and the projected or expected. Shown below are the procedures to which the inputs to the equations were calculated. 

Standard Rate = (2 direct labor hour) x ($15/hour) x (1800) = 54,000
Actual Direct Labor cost = $48,000

The variance is calculated by subtracting the actual cost from the standard rate.
            Variance = ($54,000) - ($48,000)
            Variance = $6,000

Therefore, the variance to the given data is $6,000. 
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