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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

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 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
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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