The standard cost of Product XZ includes 3 hours of direct labor at $20 per hour. The predetermined overhead rate is $25 per direct labor hour. During September, the company incurred 6,300 hours of direct labor at an average rate of $21.25 per hour and $168,750 of manufacturing overhead costs. It produced 2,200 units. Compute the total, price, and quantity variances for labor.

The standard cost of Product XZ includes 3 hours of direct labor at $20 per hour. The predetermined overhead rate is $25 per direct labor hour. During September, the company incurred 6,300 hours of direct labor at an average rate of $21.25 per hour and $168,750 of manufacturing overhead costs. It produced 2,200 units. Compute the total, price, and quantity variances for labor.

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

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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