# Labor efficiency variance, direct labor cost, variable overhead

The following labor standards have been established for a particular product:

Standard Labor-hour per unit of output 8.0 hours

Standards labor rate $13.10 per hour

The following data pertain to operation concerning the product for the last month:

Actual hours worked 4,000 hours

Actual total cost $53,000

Actual output 400 units

What is the labor efficiency variance for the month?

A) $10,600 U

B) $11,080 U

C) $11,080 F

D) $10,480 U

The following information pertains to Bates Company's direct labor for March:

Standard direct labor-hours 21,000

Actual direct labor-hours 20,000

Favorable direct labor rate variance $8,400

Standard direct labor rate per hour $6.30

What was Bates' total direct labor cost for March?

A) $117,600

B) $118,000

C) $134,000

D) $134,400

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours unit of output 5.6 hours

Standard variable overhead rate $19.15 per hour

The following data pertain to operation for the last month:

Actual hours 5,100 hours

Actual total variable overhead cost $99,195

Actual output 1,100 units

What is the variable overhead efficiency variance for the month?

A) $20,299 F

B) $18,769 F

C) $1,8484 F

D) $20,617 F

https://brainmass.com/business/labour-management-and-relations/labor-efficiency-variance-direct-labor-cost-variable-overhead-108632

#### Solution Preview

The following labor standards have been established for a particular product:

Standard Labor-hour per unit of output 8.0 hours

Standards labor rate $13.10 per hour

The following data pertain to operation concerning the product for the last month:

Actual hours worked 4,000 hours

Actual total cost $53,000

Actual output 400 units

What is the labor efficiency variance for the month?

A) $10,600 U

B) $11,080 U

C) $11,080 F

D) $10,480 U

Labor efficiency variance = difference between actual hours worked x standard ...

#### Solution Summary

This solution is comprised of a detailed explanation and calculation to find labor efficiency variance, direct labor cost, and variable overhead efficiency variance.