Explore BrainMass

# Favorable or Unfavorable Variances

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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

© BrainMass Inc. brainmass.com June 3, 2020, 11:05 pm ad1c9bdddf
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