The standard labor cost in the production of a pair of Titan Brand running shoes is 0.50 hours at $16 per hour. During the month of July, 27,500 pairs were produced. Actual labor costs were $154,000 for 9,600 hours. Compute the labor rate variance and labor efficiency variance for the month of July.

The standard labor cost in the production of a pair of Titan Brand running shoes is 0.50 hours at $16 per hour. During the month of July, 27,500 pairs were produced. Actual labor costs were $154,000 for 9,600 hours. Compute the labor rate variance and labor efficiency variance for the month of July.

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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