Power Co.'s labor information for June is as follows:Direct labor hours worked69,100Standard labor hours for units manufactured72,000Unfavorable direct labor rate variance$24,185Total payroll for labor$839,565A. What was the actual labor rate per hour? Round youranswer to two decimal places.Actual labor rate $per hourB. What was the standard labor rate per hour? Roundyour answer to two decimal places.Standard labor rate $per hourC. What was the total standard labor cost for unitsproduced in June?Total standard labor cost $D. What was the direct labor time variance for June?Direct labor rate variance $

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Description: Power Co.'s labor information for June is as follows:Direct labor hours worked69,100Standard labor hours for units manufactured72,000Unfavorable direct labor rate variance$24,185Total payroll for labor$839,565A. What was the actual labor rate per ho

Variance can be defined as the different between the actual units and the budgeted units (or…

Business

Accounting

Power Co.'s labor information for June is as follows: Direct labor hours worked 69,100 Standard labor hours for units manufactured 72,000 Unfavorable direct labor rate variance $24,185 Total payroll for labor $839,565 A. What was the actual labor rate per hour? Round your answer to two decimal places.

Power Co.'s labor information for June is as follows: Direct labor hours worked 69,100 Standard labor hours for units manufactured 72,000 Unfavorable direct labor rate variance $24,185 Total payroll for labor $839,565 A. What was the actual labor rate per hour? Round your answer to two decimal places.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

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.

Topic Video

Question

Power Co.'s labor information for June is as follows:
Direct labor hours worked
69,100
Standard labor hours for units manufactured
72,000
Unfavorable direct labor rate variance
$24,185
Total payroll for labor
$839,565
A. What was the actual labor rate per hour? Round your
answer to two decimal places.
Actual labor rate $
per hour
B. What was the standard labor rate per hour? Round
your answer to two decimal places.
Standard labor rate $
per hour
C. What was the total standard labor cost for units
produced in June?
Total standard labor cost $
D. What was the direct labor time variance for June?
Direct labor rate variance $

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