The standards for product TB12 specify 4.5 direct labor-hours per unit at $12.50 per direct labor-hour. Last month 1,640 units of product TB12 were produced using 7,410 direct labor-hours at a total direct labor wage cost of $90,220. Required: a. What was the labor rate varlance for the month? b. What was the labor efficlency varlance for the month? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance). Input all amounts as positive values.) a. ILabor rate variance b. Labor efficiency variance

The standards for product TB12 specify 4.5 direct labor-hours per unit at $12.50 per direct labor-hour. Last month 1,640 units of product TB12 were produced using 7,410 direct labor-hours at a total direct labor wage cost of $90,220. Required: a. What was the labor rate varlance for the month? b. What was the labor efficlency varlance for the month? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance). Input all amounts as positive values.) a. ILabor rate variance b. Labor efficiency variance

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 9EB: Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured...

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