15. Lebron Co. manufactures product X with the following standard costs:Direct materials, 20 yards @ ₱13.50 per yard₱270Direct labor, 4 hours @ ₱90.00 per hour₱360The following information pertains to the month of May:Direct materials, 18,000 yards @ ₱13.80 per yard ₱248,400Direct labor, 2,100 hours @ ₱91.50 per hour ₱192,150Direct materials used 9,500 yardsProduction during May 500 unitsWhat is the direct labor rate variance? Show solutionGroup of answer choices3,150 U3,150 F9,000 U9,000 F

Direct Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked

Answered: Lebron Co. manufactures product X with…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Related questions

Concept explainers

Question

15.

Lebron Co. manufactures product X with the following standard costs:

Direct materials, 20 yards @ ₱13.50 per yard	₱270
Direct labor, 4 hours @ ₱90.00 per hour	₱360

The following information pertains to the month of May:

Direct materials, 18,000 yards @ ₱13.80 per yard	₱248,400
Direct labor, 2,100 hours @ ₱91.50 per hour	₱192,150
Direct materials used	9,500 yards
Production during May	500 units

What is the direct labor rate variance? Show solution

Group of answer choices

3,150 U

3,150 F

9,000 U

9,000 F

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions