Karina will make 4,000 jackets with standard quantity of leather per jacket of 120.03 square inches of material @$0.25/square inch. The actual quantity of leather per jacket for those 4,000 jackets produced was 122.53 square inches of material @0.24/square inch. The standard labor to produce each jacket is one hour for each jacket with a cost of $16.50/hour. The actual labor used to produce each jacket was 1.06 hours at $16/hour. Using performance standards for the labor utilized in the manufacture of jackets, calculate the direct labor variances, including rate and efficiency variances. What is the dollar amount of the total direct labor variance? Leaving all other variables the same, if the standard rate for one hour were $17/hour, the labor rate variance would have been a favorable variance for how much? (Round to 2 decimal places.)

Karina will make 4,000 jackets with standard quantity of leather per jacket of 120.03 square inches of material @$0.25/square inch. The actual quantity of leather per jacket for those 4,000 jackets produced was 122.53 square inches of material @0.24/square inch. The standard labor to produce each jacket is one hour for each jacket with a cost of $16.50/hour. The actual labor used to produce each jacket was 1.06 hours at $16/hour. Using performance standards for the labor utilized in the manufacture of jackets, calculate the direct labor variances, including rate and efficiency variances. What is the dollar amount of the total direct labor variance? Leaving all other variables the same, if the standard rate for one hour were $17/hour, the labor rate variance would have been a favorable variance for how much? (Round to 2 decimal places.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 2EB: Salley is developing material and labor standards for her company. She finds that it costs $0.55 per...

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