Northland Corporation uses a standard costing system. In September, 4,800 actual labor hours were worked at a rate of $14.20 per hour. The standard number of hours is 4,600, and the standard wage rate is $15.00 per hour. Determine: 1. Labor Rate Variance 2. Labor Efficiency Variance

Northland Corporation uses a standard costing system. In September, 4,800 actual labor hours were worked at a rate of $14.20 per hour. The standard number of hours is 4,600, and the standard wage rate is $15.00 per hour. Determine: 1. Labor Rate Variance 2. Labor Efficiency Variance

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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Question

I need help with this general accounting problem using proper accounting guidelines.

Northland Corporation uses a standard costing system. In
September, 4,800 actual labor hours were worked at a rate
of $14.20 per hour. The standard number of hours is 4,600,
and the standard wage rate is $15.00 per hour.
Determine:
1. Labor Rate Variance
2. Labor Efficiency Variance

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