Ridgley Industries manufactures a product with the following labor standards: • Standard labor hours per unit = 0.75 hours Standard labor rate per hour = $30 • Actual production for May = 6,800 units Actual labor hours used = 4,900 hours . Actual direct labor cost = $147,000 Required: Compute the Labor Efficiency Variance for May.

Ridgley Industries manufactures a product with the following labor standards: • Standard labor hours per unit = 0.75 hours Standard labor rate per hour = $30 • Actual production for May = 6,800 units Actual labor hours used = 4,900 hours . Actual direct labor cost = $147,000 Required: Compute the Labor Efficiency Variance for May.

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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