Bellingham Company produces a product that requires 10 standard direct labor hours per unit at a standard hourly rate of $17.00 per hour. If 5,000 units used 51,000 hours at an hourly rate of $16.49 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 -26,010 Favorable b. Direct labor time variance 17,000 Unfavorable c. Direct labor cost variance $4 -9,010 Favorable

Bellingham Company produces a product that requires 10 standard direct labor hours per unit at a standard hourly rate of $17.00 per hour. If 5,000 units used 51,000 hours at an hourly rate of $16.49 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 -26,010 Favorable b. Direct labor time variance 17,000 Unfavorable c. Direct labor cost variance $4 -9,010 Favorable

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 2BE: Direct labor variances Bellingham Company produces a product that requires 4 standard direct labor...

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