The standard cost of product 2525 includes 4.10 hours of direct labour at $14.40 per hour. The predetermined overhead rate is$21.60 per direct labour hour. During July, the company incurred 11,170 hours of direct labour at an average rate of $14.80 per hourand $237,012 of manufacturing overhead costs. It produced 2,700 units.(a)Calculate the total, price, and quantity variances for labour. (Round per unit calculations to 2 decimal places, e.g. 1.25 and finalanswers to O decimal places, e.g. 125.)Total labour varianceLabour price varianceLabour quantity varianceeTextbook and MediaSave for LatertA$$+Ata$FavourableUnfavourableNeither favourable nor unfavourableAttempts: 0 of 3 usedSubmit Answer

Labor Price variance = It means difference between standard rate and actual rate of actual labor…

he standard cost of product 2525 includes 4.10 hours of direct labour at $14.40 per hour. The predetermined overhead rate is 21.60 per direct labour hour. During July, the company incurred 11,170 hours of direct labour at an average rate of $14.80 per hou nd $237,012 of manufacturing overhead costs. It produced 2,700 units.

he standard cost of product 2525 includes 4.10 hours of direct labour at $14.40 per hour. The predetermined overhead rate is 21.60 per direct labour hour. During July, the company incurred 11,170 hours of direct labour at an average rate of $14.80 per hou nd $237,012 of manufacturing overhead costs. It produced 2,700 units.

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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