Steph Company’s direct labor costs: Standard direct labor hours 30,000 Actual direct labor hours 29,000 Direct labor efficiency variance – favorable ₱004,000 Direct labor rate variance – favorable ₱005,800 Total payroll ₱110,200 What is the actual direct labor rate? Show solution Group of answer choices ₱ 3.60 ₱ 3.80 ₱ 4.00 ₱ 3.54
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.
14. Steph Company’s direct labor costs:
|
Standard direct labor hours |
30,000 |
|
Actual direct labor hours |
29,000 |
|
Direct labor efficiency variance – favorable |
₱004,000 |
|
Direct labor rate variance – favorable |
₱005,800 |
|
Total payroll |
₱110,200 |
What is the actual direct labor rate? Show solution
Group of answer choices
₱ 3.60
₱ 3.80
₱ 4.00
₱ 3.54
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