The Harris Manufacturing Company developed the following standards for the production of its product: • • Each unit should use 5 pounds of direct materials purchased at $10 per pound. Each unit should be produced in 4 hours at a direct labor cost of $15 per hour. Actual production was 30,000 units using 155,000 pounds of direct materials at a total cost of $1,550,000. The company also required 120,000 direct labor hours at a total cost of $2,000,000. What was the direct labor "cost" variance?

The Harris Manufacturing Company developed the following standards for the production of its product: • • Each unit should use 5 pounds of direct materials purchased at $10 per pound. Each unit should be produced in 4 hours at a direct labor cost of $15 per hour. Actual production was 30,000 units using 155,000 pounds of direct materials at a total cost of $1,550,000. The company also required 120,000 direct labor hours at a total cost of $2,000,000. What was the direct labor "cost" variance?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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