Direct Labor VariancesEncinas Company produces a product that requires 3 standard hours per unit at a standard hourly rate of $21 per hour. If 2,300 units required 6,600 hours atan hourly rate of $20.50 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) total direct labor cost variance? Enter a favorablevariance as a negative number using a minus sign and an unfavorable variance as a positive number.a. Direct labor rate varianceFavorable ✓b. Direct labor time varianceFavorablec. Total direct labor cost varianceFavorable✓

Answer: a. Direct labor rate variance-$3,300 (favorable)b. Direct labor time variance-$6,300…

Answered: Direct Labor Variances Encinas Company…

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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Subject: acounting
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