A company has the following direct labor standards and actual data for producing 4,200 units: ⚫ Standard: 4 hours per unit at $8 per hour • Actual hours worked: 4,500 ⚫ Actual rate per hour: $7.75 Calculate the total direct labor cost variance.

A company has the following direct labor standards and actual data for producing 4,200 units: ⚫ Standard: 4 hours per unit at $8 per hour • Actual hours worked: 4,500 ⚫ Actual rate per hour: $7.75 Calculate the total direct labor cost variance.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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A company has the following direct labor standards and actual data for
producing 4,200 units:
⚫ Standard: 4 hours per unit at $8 per hour
• Actual hours worked: 4,500
⚫ Actual rate per hour: $7.75
Calculate the total direct labor cost variance.

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