Shimano Company makes a product that is expected to require 3 hours of labor per unit of product. The standard cost of labor is $5.40. Shimano actually used 2.90 hours of labor per unit of product. The actual cost of labor was $5.30 per hour. Shimano made 1,400 units of product during the period. Based on this information alone, the labor price variance is: - - - - $406 favorable. $406 unfavorable. $756 favorable. $756 unfavorable.
Shimano Company makes a product that is expected to require 3 hours of labor per unit of product. The standard cost of labor is $5.40. Shimano actually used 2.90 hours of labor per unit of product. The actual cost of labor was $5.30 per hour. Shimano made 1,400 units of product during the period. Based on this information alone, the labor price variance is: - - - - $406 favorable. $406 unfavorable. $756 favorable. $756 unfavorable.
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...
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Transcribed Image Text:Shimano Company makes a product that is expected to require 3 hours
of labor per unit of product. The standard cost of labor is $5.40.
Shimano actually used 2.90 hours of labor per unit of product. The
actual cost of labor was $5.30 per hour. Shimano made 1,400 units of
product during the period. Based on this information alone, the labor
price variance is:
-
-
-
-
$406 favorable.
$406 unfavorable.
$756 favorable.
$756 unfavorable.
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