The standard for direct labor is 1.5 hours per unit at $20 per hour. During the month, 900 units were produced. The actual direct labor cost incurred was $27,000 for 1,200 hours worked. What is the total direct labor variance?

The standard for direct labor is 1.5 hours per unit at $20 per hour. During the month, 900 units were produced. The actual direct labor cost incurred was $27,000 for 1,200 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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Question

Can you explain this general accounting question using accurate calculation methods?

The standard for direct labor is 1.5 hours per unit at $20 per hour.
During the month, 900 units were produced. The actual direct
labor cost incurred was $27,000 for 1,200 hours worked.
What is the total direct labor variance?

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