For the stamping department of a manufacturing firm, the standard cost for direct labor is $15 per hour, and the production standard calls for 1,000 stampings per hour. During February, 198 hours were required for actual production of 186,000 stampings. Actual direct labor cost for the stamping department for June was $3,168.   Required: Complete the following performance report for February: Calculate the direct labor efficiency and rate variances for February. Reporting the efficiency and rate variances to the appropriate managers could improve control over the stamping department's direct labor.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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For the stamping department of a manufacturing firm, the standard cost for direct labor is $15 per hour, and the production standard calls for 1,000 stampings per hour. During February, 198 hours were required for actual production of 186,000 stampings. Actual direct labor cost for the stamping department for June was $3,168.
 

Required:

  1. Complete the following performance report for February:
  2. Calculate the direct labor efficiency and rate variances for February.
  3. Reporting the efficiency and rate variances to the appropriate managers could improve control over the stamping department's direct labor.

 

 

 

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