Swan Company has a direct labor standard of 34 hours per unit of output. Each employee has a standard wage rate of $33 per hour. During March, employees worked 15,000 hours. The direct labor rate variance was $11,070 favorable, and the direct labor efficiency variance was $17,300 unfavorable. What was the actual payroll?
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.
Swan Company has a direct labor standard of 34 hours per unit of output. Each employee has a standard wage rate of $33 per hour. During March, employees worked 15,000 hours. The direct labor rate variance was $11,070 favorable, and the direct labor efficiency variance was $17,300 unfavorable. What was the actual payroll?
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$495,000
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$477,700
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$506,070
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$483,930
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