Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 3 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 10,000 units. The standard cost for labor allowed for the output was $120,000, and there was an unfavorable direct labor time variance of $5,872. A. What was the standard cost per hour? Round your answer to two decimal places. Standard cost $fill in the blank 1 per hour B. How many actual hours were worked? Actual hours fill in the blank 2 C. If the workers were paid $4.15 per hour, what was the direct labor rate variance? Round your answer to two decimal places. Enter the amount as positive number. Direct labor rate variance $fill in the blank 3 Unfavorable
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.
Queen Industries uses a
A. What was the standard cost per hour? Round your answer to two decimal places.
Standard cost $fill in the blank 1 per hour
B. How many actual hours were worked?
Actual hours fill in the blank 2
C. If the workers were paid $4.15 per hour, what was the direct labor rate variance? Round your answer to two decimal places. Enter the amount as positive number.
| Direct labor rate variance | $fill in the blank 3 | Unfavorable |
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