Japan Company produces lamps that require 2 standard hours per unit at an hourly rate of $20.40 per hour. Production of 3,300 units required 6,800 hours at an hourly rate of $21.00 per hour. Enter favorable variances as negative numbers. a) Determine the direct labor rate variance. b) Determine the direct labor time variance. c) Determine the cost variance.
Japan Company produces lamps that require 2 standard hours per unit at an hourly rate of $20.40 per hour. Production of 3,300 units required 6,800 hours at an hourly rate of $21.00 per hour. Enter favorable variances as negative numbers. a) Determine the direct labor rate variance. b) Determine the direct labor time variance. c) Determine the cost variance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Japan Company produces lamps that require 2 standard hours per unit at an hourly rate of $20.40 per hour. Production of 3,300 units required 6,800 hours at an hourly rate of $21.00 per hour. Enter favorable variances as negative numbers.
a) Determine the direct labor rate variance.
b) Determine the direct labor time variance.
c) Determine the cost variance.
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