Answer:
October
direct labor rate variance =$2,420 unfavorable
direct labor efficiency variance =$11,060 favorable
direct labor cost variance = $ 8,640 favorable
<em>Investigate : direct labor efficiency variance</em>
November
direct labor rate variance = $4,025 unfavorable
direct labor efficiency variance =$ 39,500 favorable
direct labor cost variance = $35,475 favorable
<em>Investigate : direct labor efficiency variance</em>
Explanation:
October
direct labor rate variance = (Aq × Ap) - (Aq × Sp)
= (12,100×$16) - (12,100×$15.80)
=$2,420 unfavorable
direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)
=(12,100 × $15.80) - (6,400×2 ×$15.80)
=$11,060 favorable
direct labor cost variance = direct labor rate variance + direct labor efficiency variance
= $2,420 (A) + $11,060 (F)
= $ 8,640 favorable
November
direct labor rate variance = (Aq × Ap) - (Aq × Sp)
= (16,100×$16.05) - (16,100×$15.80)
= $4,025 unfavorable
direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)
=(16,100 × $15.80) - (6,800×2 ×$15.80)
=$ 39,500 favorable
direct labor cost variance = direct labor rate variance + direct labor efficiency variance
= $4,025 (A) + $ 39,500 (F)
= $35,475 favorable
