Answer:
Provided Information
Standard Hours = 24 minutes per unit
that means 5 units in 2 hours
Standard Cost = $5.40 per hour
Actual labor hours = 8,390
Actual Cost = $43,628
Actual production = 19,600 units
1. Standard labor Hours for actually produced = (19,600/5) 2 = 7,840 hours
2. Standard Labor Cost = 7,840 $5.40 = $42,336
3. Labor Spending Variance = Standard Cost - Actual Cost
= $42,336 - $43,628 = - $1,292 Unfavorable
4. Labor Rate Variance = (Standard Rate - Actual Rate) Actual Hours
= ($5.40 - (43,628/8,390)) 8,390
= (5.40 - 5.2) 8,390 = $1,678 Favorable
Labor Efficiency Variance = (Standard Hours - Actual Hours) Actual Rate
= (7,840 - 8,320) $5.20
= - $2,496 Unfavorable
5. Standard Rate of overhead = $4.30 per hour
Actual Overhead Rate = $41,950/8,390 = $5
Overhead Efficiency Variance = (Standard Hours - Actual Hours) Standard Rate
= (7,840 - 8,390) $4.30 = - $2,365 Unfavorable