# Favorable or Unfavorable Variances

James has the following information pertaining to its usage of direct labor in a recent period:

Total direct labor hours spent 30,000

Total units manufactured 8,000

Actual wage rate per hour $16

Standard cost data

Wage rate per hour $18

Standard hours per unit 4

Required: Calculate the following variances (be sure to indicate whether the variance is favorable or unfavorable).

(A) Direct labor efficiency variance

(B) Direct labor rate variance

https://brainmass.com/business/accounting/favorable-unfavorable-variances-262545

#### Solution Preview

Calculate the following variances (favorable or unfavorable).

James has the following information pertaining to its usage of direct labor in a recent period:

Total direct labor hours spent 30,000

Total units manufactured 8,000

Actual ...

#### Solution Summary

This solution is comprised of a detailed explanation to calculate the following variances.