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.

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

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

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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