A manufactured product has the following information for June. Standard Actual 6 lbs. @ $8 per lb. 3 hrs. @ $15 per hr. 3 hrs. e $12 per hr. 48,000 lbs. @ $8.20 per lb. 23,400 hrs. @ $15.40 per hr. $289,700 7,900 Direct materials Direct labor Overhead Units manufactured Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.) AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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AH = Actual Hours
%3D
SH = Standard Hours
AR = Actual Rate
%3D
SR = Standard Rate
%3D
Actual Cost
Standard Cost
АН
AR
АН
SR
SH
SR
23,400
$ 15.40
23,400
$ 15.00
63,200
$ 15.00
$ 360,360
$ 351,000
$ 948,000
$ 9,360
$ 597,000
Direct labor rate variance
$ 9,360 Unfavorable
Direct labor efficiency variance
597,000 Favorable
Total direct labor variance
Unfavorable
Transcribed Image Text:AH = Actual Hours %3D SH = Standard Hours AR = Actual Rate %3D SR = Standard Rate %3D Actual Cost Standard Cost АН AR АН SR SH SR 23,400 $ 15.40 23,400 $ 15.00 63,200 $ 15.00 $ 360,360 $ 351,000 $ 948,000 $ 9,360 $ 597,000 Direct labor rate variance $ 9,360 Unfavorable Direct labor efficiency variance 597,000 Favorable Total direct labor variance Unfavorable
A manufactured product has the following information for June.
Standard
Actual
Direct materials
6 lbs. @ $8 per lb.
3 hrs. @ $15 per hr.
3 hrs. @ $12 per hr.
48,000 lbs. @ $8.20 per lb.
23,400 hrs. @ $15.40 per hr.
$289,700
7,900
Direct labor
Overhead
Units manufactured
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.)
AH = Actual Hours
SH = Standard Hours
%3D
%3D
AR = Actual Rate
%3D
SR = Standard Rate
Transcribed Image Text:A manufactured product has the following information for June. Standard Actual Direct materials 6 lbs. @ $8 per lb. 3 hrs. @ $15 per hr. 3 hrs. @ $12 per hr. 48,000 lbs. @ $8.20 per lb. 23,400 hrs. @ $15.40 per hr. $289,700 7,900 Direct labor Overhead Units manufactured 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.) AH = Actual Hours SH = Standard Hours %3D %3D AR = Actual Rate %3D SR = Standard Rate
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