Direct Labor VariancesBellingham Company produces a product that requires 7 standard hours per unit at a standard hourly rate of $20.00 per hour. If 5,500 unitsrequired 40,000 hours at an hourly rate of $19.40 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) total directlabor cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.a. Direct labor rate varianceb. Direct labor time variance$c. Total direct labor cost variance

Calculation of direct labor rate, time and total direct labor cost variance:

Answered: Direct Labor Variances Bellingham…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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