Hughes Satellites' actual direct labor cost was $67,000 during the current period. Hughes reported an unfavorable direct labor rate variance of $1,800 and a favorable direct labor efficiency variance of $2,900. What was the standard direct labor cost for actual output during the period? IMPORTANT: Provide your answer in the following format: xxxxx (Do NOT use the dollar sign or commas in your final answer)
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.
Hughes Satellites' actual direct labor cost was $67,000 during the current period. Hughes reported an unfavorable direct labor rate variance of $1,800 and a favorable direct labor efficiency variance of $2,900.
What was the standard direct labor cost for actual output during the period?
IMPORTANT: Provide your answer in the following format: xxxxx (Do NOT use the dollar sign or commas in your final answer)
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