A manufactured product has the following information for June: Standard Actual Direct materials 7 lbs. @ $8 per lb. 51,000 lbs. @ $8.10 per lb. Direct labor 3 hrs. @ $15 per 21,400 hrs. @ $15.40 hr. per hr. 3 hrs. @ $13 per $286,400 hr. Overhead Units manufactured 7,200 Compute the direct labor rate variance and the direct labor efficiency variance.

A manufactured product has the following information for June: Standard Actual Direct materials 7 lbs. @ $8 per lb. 51,000 lbs. @ $8.10 per lb. Direct labor 3 hrs. @ $15 per 21,400 hrs. @ $15.40 hr. per hr. 3 hrs. @ $13 per $286,400 hr. Overhead Units manufactured 7,200 Compute the direct labor rate variance and the direct labor efficiency variance.

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 1PB: Direct materials and direct labor variance analysis Lenni Clothing Co. manufactures clothing in a...

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