Amos, Inc. uses a standard cost system with the following labor standards for one unit of product: standard hours 0.2 and standard wage rate $8. During January, Amos incurred 3,667 hours of direct labor and was paid $28,809 in wages in production of 17,800 units. Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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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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Amos, Inc. uses a standard cost system with the following
labor standards for one unit of product: standard hours
0.2 and standard wage rate $8. During January, Amos
incurred 3,667 hours of direct labor and was paid $28,809
in wages in production of 17,800 units. Calculate the direct
labor rate and efficiency variances and indicate whether
the variances are favorable or unfavorable.
Transcribed Image Text:Amos, Inc. uses a standard cost system with the following labor standards for one unit of product: standard hours 0.2 and standard wage rate $8. During January, Amos incurred 3,667 hours of direct labor and was paid $28,809 in wages in production of 17,800 units. Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable.
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