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LO2 E8-7 Computing Labor Variances Similar to Recall and Review 1 LIFT Inc. manufactures garage doors for homes. The standard quantity of direct labor to manufacture a door is 4.5 hours. The standard hourly wage in this department is $12.50 per hour. During August, 6,100 doors were produced. The payroll records indicate that 31,110 hours were worked at a total cost for payroll of $411,274.20. Calculate the following: 1. Labor rate variance. 2. Labor efficiency variance. 3. Net labor variance.

LO2 E8-7 Computing Labor Variances Similar to Recall and Review 1 LIFT Inc. manufactures garage doors for homes. The standard quantity of direct labor to manufacture a door is 4.5 hours. The standard hourly wage in this department is $12.50 per hour. During August, 6,100 doors were produced. The payroll records indicate that 31,110 hours were worked at a total cost for payroll of $411,274.20. Calculate the following: 1. Labor rate variance. 2. Labor efficiency variance. 3. Net labor variance.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...
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LO2 E8-7 Computing Labor Variances Similar to Recall and Review 1 LIFT Inc. manufactures garage doors for homes. The standard quantity of direct labor to manufacture a door is 4.5 hours. The standard hourly wage in this department is $12.50 per hour. During August, 6,100 doors were produced. The payroll records indicate that 31,110 hours were worked at a total cost for payroll of $411,274.20. Calculate the following: 1. Labor rate variance. 2. Labor efficiency variance. 3. Net labor variance.
Transcribed Image Text:LO2 E8-7 Computing Labor Variances Similar to Recall and Review 1 LIFT Inc. manufactures garage doors for homes. The standard quantity of direct labor to manufacture a door is 4.5 hours. The standard hourly wage in this department is $12.50 per hour. During August, 6,100 doors were produced. The payroll records indicate that 31,110 hours were worked at a total cost for payroll of $411,274.20. Calculate the following: 1. Labor rate variance. 2. Labor efficiency variance. 3. Net labor variance.
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