12. The following data relate to direct labor costs for August: Actual costs: 8,700 hours at $16.00 per hour Standard costs: 9,000 hours at $13.25 per hour What is the direct labor rate variance? a. $3,975 favorable b. $3,975 unfavorable c. $23,925 favorable d. $23,925 unfavorable
12. The following data relate to direct labor costs for August: Actual costs: 8,700 hours at $16.00 per hour Standard costs: 9,000 hours at $13.25 per hour What is the direct labor rate variance? a. $3,975 favorable b. $3,975 unfavorable c. $23,925 favorable d. $23,925 unfavorable
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 8EB: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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