Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) 61,500 S

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Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) 61,500 S

tandard direct labor hours allowed (SQ) 63,000 Total payroll for direct labor $774,900 Direct labor efficiency variance $18,000 The direct labor flexible-budget variance for February was: $54,900 unfavorable. $42,300 unfavorable. $46,350 unfavorable. $18,900 unfavorable. $44,500 unfavorable.

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1 answer:

Rufina [12.5K] · Answer 1 · 2022-05-17T14:51:34+03:00

Answer:

d. $18,900 unfavorable.

Explanation:

Direct labor efficiency variance = SR*(SH-AH)

18000 = SR*(63000-61500)

18000 = 1500 SR

SR = $12

Total standard direct labor cost for February = 63000*12= $756,000

Direct labor flexible-budget variance = $774,900 - $756,000 = $18900 Unfavorable