Question

Alexis company recently completed 10,600 units of its single product, consuming 32,000 labor hours that cost the firm $480,000. according to manufacturing specifications, each unit should have required 3 hours of labor time at $15.40 per hour. on the basis of this information, determine alexis's labor rate variance and labor efficiency variance.

Answer 1

Given the information in this question (10,600 units of its single product, consuming 32,000 labor hours that cost the firm $480,000), Alexis's labeor rate variance and labor efficiency variance is $12,800F and $3,080U repectively. The answer in this question is $12,800F labor rate variance and $3,080U labor efficiency variance.