The Solar Manufacturing Company has developed the following standards for the production of its product: ⚫ Each unit requires 5 pounds of direct materials purchased at $10 per pound. ⚫ Each unit should be produced in 2 hours at a direct labor cost of $20 per hour. Actual production was 30,000 units, requiring: 64,500 pounds of direct materials at a total cost of $630,000. 58,200 direct labor hours at a total cost of $1,176,000. What is the direct labor "cost" variance?

The Solar Manufacturing Company has developed the following standards for the production of its product: ⚫ Each unit requires 5 pounds of direct materials purchased at $10 per pound. ⚫ Each unit should be produced in 2 hours at a direct labor cost of $20 per hour. Actual production was 30,000 units, requiring: 64,500 pounds of direct materials at a total cost of $630,000. 58,200 direct labor hours at a total cost of $1,176,000. What is the direct labor "cost" variance?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...

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