Direct Labor Variances Bellingham Company produces a product that requires 5 standard hours per unit at a standard hourly rate of $18.00 per hour. If 5,700 units required 29,400 hours at an hourly rate of $17.10 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) total direct labor cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 2BE: Direct labor variances Bellingham Company produces a product that requires 4 standard direct labor...
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Direct Labor Variances

Bellingham Company produces a product that requires 5 standard hours per unit at a standard hourly rate of $18.00 per hour. If 5,700 units required 29,400 hours at an hourly rate of $17.10 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) total direct labor cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct Labor Variances
Bellingham Company produces a product that requires 5 standard hours per unit at a standard hourly rate of $18.00 per hour. If 5,700 units required 29,400 hours
at an hourly rate of $17.10 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) total direct labor cost variance? Enter a favorable variance
as a negative number using a minus sign and an unfavorable variance as a positive number.
a. Direct labor rate variance
$
b. Direct labor time variance
24
c. Total direct labor cost variance
$
Transcribed Image Text:Direct Labor Variances Bellingham Company produces a product that requires 5 standard hours per unit at a standard hourly rate of $18.00 per hour. If 5,700 units required 29,400 hours at an hourly rate of $17.10 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) total direct labor cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance $ b. Direct labor time variance 24 c. Total direct labor cost variance $
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