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borishaifa [10]
3 years ago
12

The following data relate to direct labor costs for the current period: Standard costs 7,500 hours at $11.70 Actual costs 6,400

hours at $10.50 What is the direct labor time variance
Business
1 answer:
nydimaria [60]3 years ago
3 0

Answer:

Direct labor time (efficiency) variance= $12,870 favorable

Explanation:

Giving the following information:

Standard costs 7,500 hours at $11.70

Actual costs 6,400 hours

<u>To calculate the direct labor time (efficiency) variance, we need to use the following formula:</u>

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (7,500 - 6,400)*11.7

Direct labor time (efficiency) variance= $12,870 favorable

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