Assume the following: • The standard labor rate per hour is $17.50. • The standard labor-hours allowed per unit of finished goods is 3 hours. • The actual quantity of labor hours worked during the period was 44,600 hours. • The total actual direct labor cost for the period was $726,000. • The company produced 15,000 units of finished goods during the period. What is the labor efficiency variance? Multiple Choice $7,000 U $7,000 F $54,500 U $54,500 F

Assume the following: • The standard labor rate per hour is $17.50. • The standard labor-hours allowed per unit of finished goods is 3 hours. • The actual quantity of labor hours worked during the period was 44,600 hours. • The total actual direct labor cost for the period was $726,000. • The company produced 15,000 units of finished goods during the period. What is the labor efficiency variance? Multiple Choice $7,000 U $7,000 F $54,500 U $54,500 F

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Description: Assume the following:• The standard labor rate per hour is $17.50.• The standard labor-hours allowed per unit of finished goods is 3 hours.• The actual quantity of labor hours worked during the period was 44,600 hours.• The total actual direct labor

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 31P: Misterio Company uses a standard costing system. During the past quarter, the following variances...

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Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
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