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erastova [34]
3 years ago
13

The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.6 hours

Standard labor rate $ 15.50 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 8,500 hours Actual total labor cost $ 129,200 Actual output 840 unitsWhat is the labor rate variance for the month? F or UWhat is the labor efficiency varaiance for the month? F or U
Business
1 answer:
Artyom0805 [142]3 years ago
4 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Standard labor-hours per unit of output 8.6 hours Standard labor rate $ 15.50 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 8,500 hours Actual total labor cost $ 129,200 Actual output 840 units

Actual rate= 129,200/8,500= 15.2

Direct labor price variance= (SR - AR)*AQ

Direct labor price variance= (15.5 - 15.2)*8,500= $2,550 favorable

Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= (7,224 - 8,500)*15.5= $19,778 unfavorable

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