The per-unit standards for direct labor are 2.5 direct labor hours at $18 per hour. If, in producing 2,000 units, the actual direct labor cost was $94,500 for 5,250 direct labor hours worked, what is the total direct labor variance?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
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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Can you solve this general accounting problem using accurate calculation methods?

The per-unit standards for direct labor are 2.5 direct labor hours at
$18 per hour. If, in producing 2,000 units, the actual direct labor cost
was $94,500 for 5,250 direct labor hours worked, what is the total
direct labor variance?
Transcribed Image Text:The per-unit standards for direct labor are 2.5 direct labor hours at $18 per hour. If, in producing 2,000 units, the actual direct labor cost was $94,500 for 5,250 direct labor hours worked, what is the total direct labor variance?
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