Use the following data to find the direct labor cost variance. Direct labor stan

Question

Use the following data to find the direct labor cost variance.        Direct labor standard (4 hrs. @ $5/hr.)   $20 per unit   Actual hours worked per unit   3.5 hours   Actual units produced   3,800 units   Actual rate per hour   $5.50
Use the following data to find the direct labor cost variance.        Direct labor standard (4 hrs. @ $5/hr.)   $20 per unit   Actual hours worked per unit   3.5 hours   Actual units produced   3,800 units   Actual rate per hour   $5.50
Use the following data to find the direct labor cost variance.        Direct labor standard (4 hrs. @ $5/hr.)   $20 per unit   Actual hours worked per unit   3.5 hours   Actual units produced   3,800 units   Actual rate per hour   $5.50
Use the following data to find the direct labor cost variance.

Explanation / Answer

SRSH

SRAH

ARAH

5 x 15,200

5 X 13,300

6 x 13,300

76,000

66,500

79,800

SH=Standard hours for actual production= standard hrs required per unit x actual production

                                                                                =4 x 3,800=15200 hrs

SR=standard rate per hour (given)= $5

AH=actual hrs taken = No of hrs took to produce one unit x actual production    

                                          =3.5 x 3800=13,300 hrs

AR= Actual rate per hr(given)=5               

1) Labour Efficiency variance=    SRSH- SRAH=76,000-66,500=9,500 F

2) Labour Rate variance= SRAH- ARAH=66,500-79,800=13,300 U

3) Labour Cost variance= SRSH- ARAH=76,000-79,800=3,800 U

SRSH

SRAH

ARAH

5 x 15,200

5 X 13,300

6 x 13,300

76,000

66,500

79,800

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.