Beta Manufacturing uses a standard cost system with the following labor standards for one unit of product: standard hours 0.3 and standard wage rate $12. During March, Beta incurred 4,850 hours of direct labor and paid $56,260 in wages in production of 15,600 units. Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable.

Beta Manufacturing uses a standard cost system with the following labor standards for one unit of product: standard hours 0.3 and standard wage rate $12. During March, Beta incurred 4,850 hours of direct labor and paid $56,260 in wages in production of 15,600 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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