6. The following labor standards have been established for a particular product:
Standard labor hours per unit of output......0.3 hours
Standard labor rate..................................$15.50 per hour

The following data pertain to operations concerning the product for the last month:
Actual hours worked.........3800
Actual total labor cost.....$59,470
Actual output.......... 12,800 units

Required: a. What is the labor rate variance for the month? b. What is the labor efficiency variance for the month

Solution Preview

a. What is the labor rate variance for the month?

Actual rate per hour = Actual total labor cost/Actual hours worked
Actual rate per hour = $59,470/3,800
Actual rate per hour = $15.65

Labor rate variance = (Actual hours*actual rate per hour) -(Actual hours*Standard rate per hour)
Labor ...

Solution Summary

This solution illustrates how to compute a labor rate and labor efficiency variances.

Standard labor hours per unit of output: 2.8
standard laborrate per hour: 11.50
operations for the last month:
actual hours worked: 6900
actual total labor cost: 80,385
actual output: 2300 units
What is the labor variance for the month?
What is the laborefficiencyrate for the month?

Quicksand Company has set the following standards for one unit of product:
Direct material
Quantity: 6.2 pounds per unit
Price per pound: $11 per pound
Direct labor
Quantity: 6 hours per unit
Rate per hour: $23 per hour
Actual costs incurred in the production of 2,800 units were as follows:
Direct material: $

Actual production and sales were 62,900 coffee mugs, actual direct materials usage was 10,000 lbs. at an actual price of $0.17 per lb., actual direct labor usage was 202,000 minutes at a total cost of $30,300, actual overhead cost was $10,000 variable and $30,500 fixed, marketing and administrative costs were $115,000.
Comput

Direct labor variance matrix, there are three factors: (1) Actual hour x Actual rate, (2) Actual hour x Standard rate (3) Standard hours x standard rate. Using the numbers, indicate the formuas for each of the direct laborvariances.

Can you help me get started with this assignment?
Company manufactures only one product x. The company uses a standard cost system and has established the following standards per unit of product x:
Standard Quantity Standard Price Standard Cost
Direct Materials 3.0 lbs.

See attachment for full problem details.
The following direct labor standards have been established for product N30A:
Required:
a. What was the laborrate variance for the month?
b. What was the laborefficiency variance for the month?
c. Prepare a journal entry to record direct labor costs during the month, includin

Beta Company produces two products, A and B, each of which uses materials X and Y. The following unit standard costs apply:
Product A:
Material X = 4 lbs @ $13, Material Y = 1 lb. @ $8.50, Direct Labor = 1/5 hr. @ $14
Product B:
Material X =6 lbs @ $13, Material Y = 2 lbs @ $8.50, Direct Labor = 1/3 hr. @ $14
During N

Hollowell Audio, Inc., manufactures military-specification compact discs. The company uses standards to control its costs. The labor standards that have been set for one disc are as follows:
Standard Hours: 6 minutes
Standard Rate per Hour: $ 24.00
Standard Cost: $ 2.40
During July, 2,125 hours of direct labor time

Walker Corporation is a distributor of several products. They use a predetermined variable overhead rate based on direct labor hours. In the most recent month, 90,000 items were shipped to customers using 3,500 direct labor hours. The company incurred a total of $12,600 in variable overhead costs. According to the company's stan