Lewis Company's standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of $12.10 per hour. During August, 44,000 hours of labor are incurred at a cost of $12.30 per hour to produce 13,500 units of Product DD. (a) Compute the total labor variance. Total labor variance 2$ Unfavorable (b) Compute the labor price and quantity variances. Labor price variance $ Unfavorable Labor quantity variance 2$ Unfavorable (c) Compute the labor price and quantity variances, assuming the standard is 3.40 hours of direct labor at $12.45 per hour. Labor price variance 2$ Favorable Labor quantity variance $ Favorable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

I need help answerind a b and c

Lewis Company's standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of $12.10 per hour. During
August, 44,000 hours of labor are incurred at a cost of $12.30 per hour to produce 13,500 units of Product DD.
(a)
Compute the total labor variance.
Total labor variance
$
Unfavorable
(b)
Compute the labor price and quantity variances.
Labor price variance
2$
Unfavorable
Labor quantity variance
$
Unfavorable
(c)
Compute the labor price and quantity variances, assuming the standard is 3.40 hours of direct labor at $12.45 per hour.
Labor price variance
$
Favorable
Labor quantity variance
$
Favorable
Transcribed Image Text:Lewis Company's standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of $12.10 per hour. During August, 44,000 hours of labor are incurred at a cost of $12.30 per hour to produce 13,500 units of Product DD. (a) Compute the total labor variance. Total labor variance $ Unfavorable (b) Compute the labor price and quantity variances. Labor price variance 2$ Unfavorable Labor quantity variance $ Unfavorable (c) Compute the labor price and quantity variances, assuming the standard is 3.40 hours of direct labor at $12.45 per hour. Labor price variance $ Favorable Labor quantity variance $ Favorable
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 4 images

Blurred answer
Knowledge Booster
Regulations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education