Paradise Corp. has determined a standard labor cost per unit o S9.7?(1 hour hour

Question

Paradise Corp. has determined a standard labor cost per unit o S9.7?(1 hour hour $9.70 per hour Last month, Paradise $9.70 per hour ast month, Paradise incurred 1,550 direct labor hours or which it paid $14,260. The company also produced and sold 1600 units during the month. drect labor hours for which it p sold 1600 unilts during Calculate the direct labor rate, efficlency, and spending varlances. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F for favorable, "U" for unfavorable.) Direct Labor Rate Variance Direct Labor Efriciency Variance Total Direct Labor Spending Vanance

Explanation / Answer

1 Standard Costs: Qty Rate Amount DL 1.00 9.70 9.70 Units 1600 Standard Costs for Actual: Qty Rate Amount DL 1,600.00 9.70 15,520 Actual Costs for Actual: Qty Rate Amount DL 1,550 9.20 14,260 Direct Labor Price Variance: (Standard Price-Actual Price)Actual Hours (9.70-9.20)*1550 775 Favourable DL Efficency Variance: (Standard Hours-Actual Hours)Standard Price (1600-1550)9.70 485 Favourable DL Spending Variance: 1260 Favourable (15520-14260) 2 Standard Costs: Qty Rate Amount Silver 0.40 23.00 9.20 Crystals 5.00 0.40 2.00 DL 2.00 12.00 24.00 35.20 Units 1530 Standard Costs for Actual: Qty Rate Amount Silver 612 23.00 14,076 Crystals 7,650 0.40 3,060 DL 3,060 12.00 36,720 53,856 236 Actual Costs for Actual: 134 Qty Rate Amount -195 Silver 577 23.99 13,840 Crystals 7,700 0.38 2,926 DL 3,210 11.50 36,915 53,681 Silver Crystals Direct Material Price Variance: Direct Material Price Variance: (Standard Price-Actual Price)Actual Qty (Standard Price-Actual Price)Actual Qty (23-23.99)*577 (0.40-0.38)*7700 -571.23 Unfavouarble 154 Favourable DM Efficency Variance: DM Efficency Variance: (Standard Qty-Actual Qty)Standard Price (Standard Qty-Actual Qty)Standard Price (612-577)23 (7650-7700)0.40 805 Favourable -20 Unfavouarble Direct Labor Price Variance: (Standard Price-Actual Price)Actual Hours (12-11.50)*3210 1605 Favourable DL Efficency Variance: (Standard Hours-Actual Hours)Standard Price (3060-3210)12 -1800 Unfavouarble DL Spending Variance: -195 Unfavouarble

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