direct labor rate variance and the direct labor efficiency variance

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 3CE: Refer to Cornerstone Exercise 9.1. Guillermos Oil and Lube Company provided the following...
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Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.)

 

A manufactured product has the following information for June.
Standard
Actual
6 lbs. @ $7 per lb.
3 hrs. @ $15 per hr.
3 hrs. @ $11 per hr.
Direct materials
46,800 lbs. @ $7.20 per lb.
22,900 hrs. @ $15.50 per hr.
$259, 300
7,700
Direct labor
Overhead
Units manufactured
Exercise 21-10 Direct labor variances LO P3
Compute the direct labor rate varlance and the direct labor efficiency variance. (Indicate the effect of each varlance by selecting for
favorable, unfavorable, and no varlance. Round "Rate per hour" answers to 2 decimal places.)
AH = Actual Hours
SH = Standard Hours
AR = Actual Rate
SR = Standard Rate
Actual Cost
Standard Cost
$
$
$
Transcribed Image Text:A manufactured product has the following information for June. Standard Actual 6 lbs. @ $7 per lb. 3 hrs. @ $15 per hr. 3 hrs. @ $11 per hr. Direct materials 46,800 lbs. @ $7.20 per lb. 22,900 hrs. @ $15.50 per hr. $259, 300 7,700 Direct labor Overhead Units manufactured Exercise 21-10 Direct labor variances LO P3 Compute the direct labor rate varlance and the direct labor efficiency variance. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and no varlance. Round "Rate per hour" answers to 2 decimal places.) AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Actual Cost Standard Cost $ $ $
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