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Masja [62]
3 years ago
11

Flapjack Corporation had 7,680 actual direct labor hours at an actual rate of $12.45 per hour. Original production had been budg

eted for 1,100 units, but only 960 units were actually produced. Labor standards were 7.2 hours per completed unit at a standard rate of $13.00 per hour. Round your answer to the nearest cent. The direct labor time variance is $4,208.64 unfavorable $4,208.64 favorable $9,984.00 unfavorable $9,984.00 favorable
Business
1 answer:
Mashutka [201]3 years ago
3 0

Answer:

Labour time (efficiency) variance =   $9,984 unfavorable

Explanation:

<em>The labour time variance is the dollar value of the difference between the standard time allowed for the actual output produced and the actual time used.</em>

                                                                            Hours

Standard hours ( 960 units × 7.2 hours )   =   6,912

Actual hours                                                     <u>7,680</u>

Time variance                                                     768 Unfavorable

×  standard labour rate                                     <u>×  $13</u>

 Variance                                                         <u> $9,984 </u>Unfavorable

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