5. Protic Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standards for the prime costs of one unit of product: Standard Quantity Standard Price Standard Cost Direct labor 2.6 hours $44.00/hour $114.40 During April, the total factory wages for April were $3,200,000, among those 90% were direct labor cost. The company manufactured 25,000 units of product during April using 64,000 direct labor hours. Required: a) What is the direct labor rate and efficiency variance for April?
5. Protic Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standards for the prime costs of one unit of product: Standard Quantity Standard Price Standard Cost Direct labor 2.6 hours $44.00/hour $114.40 During April, the total factory wages for April were $3,200,000, among those 90% were direct labor cost. The company manufactured 25,000 units of product during April using 64,000 direct labor hours. Required: a) What is the direct labor rate and efficiency variance for April?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![5. Protic Company employs a standard cost system in which direct materials inventory is carried
at standard cost. The company has established the following standards for the prime costs of one
unit of product:
Standard Quantity
Standard Price Standard Cost
Direct labor 2.6 hours
$44.00/hour
$114.40
During April, the total factory wages for April were $3,200,000, among those 90% were direct
labor cost. The company manufactured 25,000 units of product during April using 64,000 direct
labor hours.
Required:
a) What is the direct labor rate and efficiency variance for April?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc38bf538-09e9-4747-a4ce-88207c9f5b69%2Fea07ccd3-d7bf-4627-b86d-cdb1f5e7aba3%2Fp4lnohl_processed.png&w=3840&q=75)
Transcribed Image Text:5. Protic Company employs a standard cost system in which direct materials inventory is carried
at standard cost. The company has established the following standards for the prime costs of one
unit of product:
Standard Quantity
Standard Price Standard Cost
Direct labor 2.6 hours
$44.00/hour
$114.40
During April, the total factory wages for April were $3,200,000, among those 90% were direct
labor cost. The company manufactured 25,000 units of product during April using 64,000 direct
labor hours.
Required:
a) What is the direct labor rate and efficiency variance for April?
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