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    Favorable or Unfavorable Variances

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    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

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    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.

    $2.19

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