Question

The per-unit standards for direct labor are 1.5 direct labor hours at $15 per hour. If in producing 2500 units, the actual direct labor cost was $48825 for 3150 direct labor hours worked, the total direct labor variance is $4275 unfavorable.

Answer 1

Answer:

Total direct labour variance                                              $

Standard direct labour cost (1.5 hours x $15 x 2,500)  56,250

Less: Actual direct labour cost                                       48,825

Total direct labour variance                                            7,425(F)

Explanation:

Total direct labour variance is the difference between standard direct labour cost and actual direct labour cost. Standard direct labour cost is a function of standard hours per unit, standard rate and actual output produced.