Hello,Following is a partially completed performance report for a recent week for direct labor in the binding department of a book publisher. Original budgetFixed budgetActualBudget varianceDirect labor$5,880 $6,450 The original budget is based on the expectation that 10,080 books would be bound; the standard is 24 books per hour at a pay rate of $14 per hour.  During the week, 10,680 books were actually bound.  Employees worked 430 hours at an actual total cost of $6,450.Calculate the direct labor variance.  ???thanks.

Question
Asked Apr 11, 2019
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Hello,

Following is a partially completed performance report for a recent week for direct labor in the binding department of a book publisher.

  Original budget Fixed budget Actual Budget variance
Direct labor $5,880   $6,450  

The original budget is based on the expectation that 10,080 books would be bound; the standard is 24 books per hour at a pay rate of $14 per hour.  During the week, 10,680 books were actually bound.  Employees worked 430 hours at an actual total cost of $6,450.

Calculate the direct labor variance???

thanks.

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Expert Answer

Step 1

Calculate the standard direct labor hours.

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Step 2

Calculate the actual rate per hour.

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Step 3

Calculate the direct labor rate ...

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