Japan Company produces lamps that require 3 standard hours per unit at a standard hourly rate of $20.80 per hour. Production of 7,000 units required 20,370 hours at an hourly rate of $21.20 per hour. What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? Enter favorable variances as negative numbers. a. Direct labor rate variance b. Direct labor time variance c. Total direct labor cost variance $ $ $
Japan Company produces lamps that require 3 standard hours per unit at a standard hourly rate of $20.80 per hour. Production of 7,000 units required 20,370 hours at an hourly rate of $21.20 per hour. What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? Enter favorable variances as negative numbers. a. Direct labor rate variance b. Direct labor time variance c. Total direct labor cost variance $ $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a) b) c) favorable or unfavorable?
Transcribed Image Text:Japan Company produces lamps that require 3 standard hours per unit at a standard hourly rate of $20.80 per hour. Production of 7,000 units required 20,370 hours at an hourly rate of $21.20
per hour.
What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? Enter favorable variances as negative numbers.
a. Direct labor rate variance
b. Direct labor time variance
c. Total direct labor cost variance
$
$
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