Answer:
Logen Construction
a. Standard hours for July Production = 3,350
b. Actual hourly wage rate = $18.25
c. Direct labor variances:
i. Labor Rate Variance = $827.50 U
ii. Labor Efficiency Variance = $720 F
iii. Total Labor Variance = $107.50 U
Explanation:
a) Data and Calculations:
Direct labor hours per frame = 5 hours
Standard hourly labor rate = $18
Standard direct labor cost per frame = $90 ($18 * 5)
Number of frames produced in July = 670
Actual direct labor hours = 3,310
Actual wages earned by workers = $60,407.50
a. Standard hours for July Production = Actual production unit multiplied by standard hours per unit
= 3,350 (670 * 5) hours
b. Actual hourly wage rate = Actual direct labor cost divided by actual direct labor hours
= $18.25 ($60,407.50/3,310)
c. Direct labor variances:
i. Labor Rate Variance = Standard direct labor rate - Actual direct labor rate * Actual direct labor hours
= $827.50 U ($18 - $18.25) * 3,310
ii. Labor Efficiency Variance = Standard direct labor hours - Actual direct labor hours * Standard Direct Labor Rate
= $720 F (3,350 - 3,310) * $18
iii. Total Labor Variance = Standard Direct Labor Cost - Actual Direct Labor Cost
= $107.50 U ($60,300 - $60,407.50)
