Financial Accounting
Financial Accounting
17th Edition
ISBN: 9781259692390
Author: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello
Publisher: McGraw-Hill Education
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Chapter 4, Problem 8PA
To determine

Indicate the effect of the following errors on each financial statement.

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At Accustart, the standard quantity of labor is 25 hours per refrigeration unit. The standard wage rate is $30. In July, the company produced 85 refrigeration units and incurred 2,130 labor hours at a cost of $75,300. Calculate the labor rate variance and the labor efficiency variance. Indicate whether the variances are favorable or unfavorable.
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