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vichka [17]
3 years ago
8

The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 2200 units, the actual direct

labor cost was $65600 for 4100 direct labor hours worked, the total direct labor variance is
Business
1 answer:
Firlakuza [10]3 years ago
8 0

Answer:

400 favorable

Explanation:

The computation of total direct labor variance is presented below:-

Total direct labor variance = (Standard rate - Standard hours) × (Actual rate - Actual hours)

= ($15 × (2 × 2,200)) - $65,600

= ($15 × 4,400) - $65,600

= $66,000 - $65,600

= 400 favorable

Therefore for determining the total direct labor variance we simply applied the above formula.

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Since we need to compute the interest paid out at the end of year 1, we use the following formula in order to find the interest

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Substituting the values in the formula above we get,

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