Lewis Company's standard labor cost of producing one unit of Product DD is 3.60 hours at the rate of $14 per hour. During August, 43,900 hours of labor are incurred at a cost of $14.20 per hour to produce 12,100 units of Product DD. 1. Compute the total labor variance. 2. Compute the labor price and quantity variances. 3. Compute the labor price and quantity variances, assuming the standard is 4 hours of direct labor at $14.40 per hour.

Lewis Company's standard labor cost of producing one unit of Product DD is 3.60 hours at the rate of $14 per hour. During August, 43,900 hours of labor are incurred at a cost of $14.20 per hour to produce 12,100 units of Product DD. 1. Compute the total labor variance. 2. Compute the labor price and quantity variances. 3. Compute the labor price and quantity variances, assuming the standard is 4 hours of direct labor at $14.40 per hour.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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