Actual results Total cost of purchasing material Number of labor hours worked Number of material pounds used in production Total labor cost Number of units produced Number of material pounds purchased Harry Company has established the following standards. Price per pound of materials Number of pounds of material to produce one unit Standard labor rate Number of labor hours to produce one unit Compute Harry's labor rate variance. $58,000 1,000 hours 5,850 pounds $48,000 300 units 6,250 pounds $10.00 per pound 20 pounds $50.00 per hour 3 hours $2,000 Favorable $5,000 Favorable $5,000 Unfavorable O $2,000 Unfavorable
Actual results Total cost of purchasing material Number of labor hours worked Number of material pounds used in production Total labor cost Number of units produced Number of material pounds purchased Harry Company has established the following standards. Price per pound of materials Number of pounds of material to produce one unit Standard labor rate Number of labor hours to produce one unit Compute Harry's labor rate variance. $58,000 1,000 hours 5,850 pounds $48,000 300 units 6,250 pounds $10.00 per pound 20 pounds $50.00 per hour 3 hours $2,000 Favorable $5,000 Favorable $5,000 Unfavorable O $2,000 Unfavorable
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 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...
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