Information for Southgate Company's direct labor costs for the month of March 2021 was as follows: Actual direct labor hours: 42,000 hours Standard direct labor hours: 40,000 hours Total direct labor payroll: $315,000 Direct labor efficiency variance: unfavorable $5,000 What is Southgate's direct labor price (or rate) variance?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 8PA: Breakaway Companys labor information for May is as follows: A. What is the actual direct labor rate...
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Information for Southgate Company's direct
labor costs for the month of March 2021 was
as follows:
Actual direct labor hours: 42,000 hours
Standard direct labor hours: 40,000 hours
Total direct labor payroll: $315,000
Direct labor efficiency variance:
unfavorable $5,000
What is Southgate's direct labor price (or rate)
variance?
Transcribed Image Text:Information for Southgate Company's direct labor costs for the month of March 2021 was as follows: Actual direct labor hours: 42,000 hours Standard direct labor hours: 40,000 hours Total direct labor payroll: $315,000 Direct labor efficiency variance: unfavorable $5,000 What is Southgate's direct labor price (or rate) variance?
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