The following information pertains to ABC Company's Direct Labor for March: Standard DL Hours - 21,000 Actual DL Hours - 20,000 Labor Rate Variance - 8,400 Favorable Standard Labor Rate per hour is 6.30 What was the total actual labor cost for March?
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.
The following information pertains to ABC Company's Direct Labor for March:
Standard DL Hours - 21,000
Actual DL Hours - 20,000
Labor Rate Variance - 8,400 Favorable
Standard Labor Rate per hour is 6.30
What was the total actual labor cost for March?
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