PB9. LO 8.3 Ribco's labor cost information for making its only product for March is as foll Standard hours per unit Budgeted units for the period Finished units for the period Standard rate per hour Actual labor costs incurred Actual rate paid per hour A. What is the direct labor rate variance? B. What is the direct labor time variance? C. What is the total direct labor variance? 1.25 12,000 10,000 $ 40 $414,000 $ 36
PB9. LO 8.3 Ribco's labor cost information for making its only product for March is as foll Standard hours per unit Budgeted units for the period Finished units for the period Standard rate per hour Actual labor costs incurred Actual rate paid per hour A. What is the direct labor rate variance? B. What is the direct labor time variance? C. What is the total direct labor variance? 1.25 12,000 10,000 $ 40 $414,000 $ 36
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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Transcribed Image Text:PB9. LO 8.3 Ribco's labor cost information for making its only product for March is as follows:
Standard hours per unit
Budgeted units for the period
Finished units for the period
Standard rate per hour
Actual labor costs incurred
Actual rate paid per hour
A. What is the direct labor rate variance?
B. What is the direct labor time variance?
C. What is the total direct labor variance?
1.25
12,000
10,000
40
$
$414,000
$
36
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