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slavikrds [6]
3 years ago
13

Sheridan Company’s standard labor cost per unit of output is $33.00 (3.00 hours x $11.00 per hour). During August, the company i

ncurs 2,970 hours of direct labor at an hourly cost of $12.10 per hour in making 1,100 units of finished product. Compute the total, price, and quantity labor variances.
Business
1 answer:
seraphim [82]3 years ago
3 0

Answer:

Total variation= $363 favorable

Explanation:

Giving the following information:

Sheridan Company’s standard labor cost per unit of output is $33.00 (3.00 hours x $11.00 per hour). During August, the company incurs 2,970 hours of direct labor at an hourly cost of $12.10 per hour in making 1,100 units of finished product.

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

Direct labor efficiency variance= (3,300 - 2,970)*11= 3,630 favorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (11 - 12.1)*2,970= 3,267 unfavorable

Total variation= 363 favorable

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