Mandy Company has the following information from last month: Standard direct labor hours for units produced (SQ) 5,300 Actual direct labor hours worked (AQ) 5,150 Direct labor efficiency variance, favorable (F) $ 9,000 Total payroll $ 334,750 What was Mandy's actual direct labor rate per hour (AP)? Multiple Choice $63.16.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Q6
Mandy Company has the following information from last month:
| Standard direct labor hours for units produced (SQ) | 5,300 |
|---|---|
| Actual direct labor hours worked (AQ) | 5,150 |
| Direct labor efficiency variance, favorable (F) | $ 9,000 |
| Total payroll | $ 334,750 |
What was Mandy's actual direct labor rate per hour (AP)?
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$63.16.
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$60.00.
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$54.00.
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$58.68.
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$65.00.
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