XYZ Corporation makes a product whose direct labor standards are 0.8 hours per unit and $25 per hour. In April the company produced 7,200 units using 5,260 direct labor-hours. The actual direct labor cost was $110,460. Compute the labor usage variance for April. Be sure to indicate favorable or unfavorable. Show work.

XYZ Corporation makes a product whose direct labor standards are 0.8 hours per unit and $25 per hour. In April the company produced 7,200 units using 5,260 direct labor-hours. The actual direct labor cost was $110,460. Compute the labor usage variance for April. Be sure to indicate favorable or unfavorable. Show work.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...

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