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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![Direct Labor Variances
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
$
-9,010
Favorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7603aaed-5345-410a-affb-ef7c68fbcd2f%2F545e33b0-f551-4628-a6e5-ffe922e65ffa%2Fe1ymwp_processed.png&w=3840&q=75)
Transcribed Image Text:Direct Labor Variances
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
$
-9,010
Favorable
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