Accounting Clark Company manufactures a product with astandard direct labor cost of two hours at $16.87 perhour. During July, 2,232 units were produced using4,267 hours at $15.96 per hour. What is the laborquantity variance?

Step 1: Define Labor quantity varianceTypically, labor variation refers to variances in labor rates…

Answered: Clark Company manufactures a product…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 9PA: Power Co.s labor information for June is as follows: A. What was the actual labor rate per hour? B....

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Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
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Clark Company manufactures a product with a standard direct labor cost of two hours at $16.87 per hour. During July, 2,232 units were produced using 4,267 hours at $15.96 per hour. What is the labor quantity variance?