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Arturo Barragan
Answers (3)
AB
Answered
The standards for product G78V specify 4.1 direct labor-hours per unit at $12.10 per direct labor-hour.Last month 1,600 units of product G78V were produced using 6,600 direct labor-hours at a total direct labor wage cost of $77,220.
Required:
a.What was the labor rate variance for the month?
b.What was the labor efficiency variance for the month?
Required:
a.What was the labor rate variance for the month?
b.What was the labor efficiency variance for the month?
On May 19, 2024
a.Labor rate variance = (AH × AR)− (AH × SR)
= $77,220 − (6,600 hours × $12.10 per hour)
= $77,220 − $79,860
= $2,640 F
b.SH = Standard hours per unit × Actual output = 4.1 hours per unit × 1,600 units= 6,560 hours
Labor efficiency variance = (AH − SH)× SR
= (6,600 hours − 6,560 hours)× $12.10 per hour
= 40 hours × $12.10 per hour
= $484 U
= $77,220 − (6,600 hours × $12.10 per hour)
= $77,220 − $79,860
= $2,640 F
b.SH = Standard hours per unit × Actual output = 4.1 hours per unit × 1,600 units= 6,560 hours
Labor efficiency variance = (AH − SH)× SR
= (6,600 hours − 6,560 hours)× $12.10 per hour
= 40 hours × $12.10 per hour
= $484 U
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