Assembly line workers at Ivanhoe Manufacturing worked a total of 13500 direct labor hours to produc 37600 units. The standard for producing one unit is 15 minutes at a wage rate of $11.5. If the actual wage rate was $12.0 per direct labor hour, Ivanhoe's direct labor rate variance is Select answer from th options below $6750 unfavorable. $4700 unfavorable. $4700 favorable. $6750 favorable.
Assembly line workers at Ivanhoe Manufacturing worked a total of 13500 direct labor hours to produc 37600 units. The standard for producing one unit is 15 minutes at a wage rate of $11.5. If the actual wage rate was $12.0 per direct labor hour, Ivanhoe's direct labor rate variance is Select answer from th options below $6750 unfavorable. $4700 unfavorable. $4700 favorable. $6750 favorable.
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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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.
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