Europa Company manufactures only one product. Presented below is direct labor information for November. Standard direct labor hours 4.70 per unit of product Number of finished units produced Standard wage rate per direct labor hour (SP) 4,800 $ 20.70 Total direct labor payroll for $ the period 418,250 Actual wage rate per direct $17.50 labor hour worked (AP) The direct labor rate variance for November (to the nearest dollar) was:
Europa Company manufactures only one product. Presented below is direct labor information for November. Standard direct labor hours 4.70 per unit of product Number of finished units produced Standard wage rate per direct labor hour (SP) 4,800 $ 20.70 Total direct labor payroll for $ the period 418,250 Actual wage rate per direct $17.50 labor hour worked (AP) The direct labor rate variance for November (to the nearest dollar) was:
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Europa Company manufactures only
one product. Presented below is direct
labor information for November.
Standard direct labor hours 4.70
per unit of product
Number of finished units
produced
Standard wage rate per
direct labor hour (SP)
4,800
$ 20.70
Total direct labor payroll for $
the period
418,250
Actual wage rate per direct $17.50
labor hour worked (AP)
The direct labor rate variance for
November (to the nearest dollar) was:
Multiple Choice
$23,900 unfavorable.
$27,738 unfavorable.
$48,742 favorable.
$76,480 favorable.
$104,218 favorable.
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