The following information describes a company's usage of direct labor in a recent period: • Actual direct labor hours used: 48,500 • Actual rate per hour: $22 • Standard rate per hour: $19 • Standard hours for units produced: 45,000 How much is the direct labor price variance?

The following information describes a company's usage of direct labor in a recent period: • Actual direct labor hours used: 48,500 • Actual rate per hour: $22 • Standard rate per hour: $19 • Standard hours for units produced: 45,000 How much is the direct labor price variance?

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

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...

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The following information describes a company's usage of direct labor in a recent
period:
• Actual direct labor hours used: 48,500
• Actual rate per hour: $22
• Standard rate per hour: $19
•
Standard hours for units produced: 45,000
How much is the direct labor price variance?

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What is the direct labor rate variance of this accounting question?
A company reports the following information for its direct labor. Actual hours of direct labor used (AH) Actual rate of direct labor per hour (AR) Standard rate of direct labor per hour (SR) Standard hours of direct labor for units produced (SH) 72,000 $ 16 $ 15 73,300 AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable. Actual Cost Standard Cost
The following information describes a company’s direct labor usage in a recent period. Compute the direct labor rate and efficiency variances for the period and classify each as favorable or unfavorable. Actual direct labor hours used. 65,000 Standard direct labor rate per hour. $14 Actual direct labor rate per hour. $15 Standard direct labor hours for units produced. 67,000