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Alvarado Company produces a product that requires 10 standard direct labor hours per unit at a standard hourly rate of $10.00 per hour. If 3,000 units used 29,100 he at an hourly rate of $10.20 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative numb using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance 5,820 Unfavorable ✓ Favorable X b. Direct labor time variance 9,000 X c. Direct labor cost variance 3,180 X Favorable -X

Alvarado Company produces a product that requires 10 standard direct labor hours per unit at a standard hourly rate of $10.00 per hour. If 3,000 units used 29,100 he at an hourly rate of $10.20 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative numb using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance 5,820 Unfavorable ✓ Favorable X b. Direct labor time variance 9,000 X c. Direct labor cost variance 3,180 X Favorable -X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Direct Labor Variances Alvarado Company produces a product that requires 10 standard direct labor hours per unit at a standard hourly rate of $10.00 per hour. If 3,000 units used 29,100 hours at an hourly rate of $10.20 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance 5,820 V b. Direct labor time variance 9,000 X c. Direct labor cost variance 3,180 X Unfavorable Favorable Favorable X X
Transcribed Image Text:Direct Labor Variances Alvarado Company produces a product that requires 10 standard direct labor hours per unit at a standard hourly rate of $10.00 per hour. If 3,000 units used 29,100 hours at an hourly rate of $10.20 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance 5,820 V b. Direct labor time variance 9,000 X c. Direct labor cost variance 3,180 X Unfavorable Favorable Favorable X X
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