The following labor standards have been established for a particular product Standard labor hours per unit of output Standard labor rate 4.1 hours $ 17.80 per hour The following data pertaln to operations concerning the product for the last month: Actual hours worked Actual total labor cost Actual output 7,700 hours $ 137,830 1,800 units Required: a. What Is the labor rate varlance for the month? b. What is the labor efficlency varlance for the month? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.) a. Labor rate variance b. Labor efficiency variance
The following labor standards have been established for a particular product Standard labor hours per unit of output Standard labor rate 4.1 hours $ 17.80 per hour The following data pertaln to operations concerning the product for the last month: Actual hours worked Actual total labor cost Actual output 7,700 hours $ 137,830 1,800 units Required: a. What Is the labor rate varlance for the month? b. What is the labor efficlency varlance for the month? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.) a. Labor rate variance b. Labor efficiency variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following labor standards have been established for a particular product
Standard labor hours per unit of output
Standard labor rate
4.1 hours
$ 17.80 per hour
The following data pertaln to operations concerning the product for the last month:
Actual hours worked
Actual total labor cost
Actual output
7,700 hours
$ 137,830
1,800 units
Required:
a. What Is the labor rate varlance for the month?
b. What Is the labor efficlency varlance for the month?
(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero
varlance). Input all amounts as positive values.)
a. Labor rate variance
b. Labor efficiency variance
(hrey
4 of 10 E
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