S Lewis Company\'s standard labor cost of producing one unit of Product DD is 3.
ID: 2530031 • Letter: S
Question
S Lewis Company's standard labor cost of producing one unit of Product DD is 3.7 hours at the rate of $12.9 per hour. During August, 40,300 hours of labor are inourred at a cost of $13.10 per hour to produce 10,700 units of Product DD Compute the total labor variance Total labor variance 1721 Unfavorable Compute the labor price and quantity variances Labor price variance S Labor quantity variance sl Unfavorable 9159 Unfavorable Compute the labor price and quantity variances, assuming the standard is 3.9 hours of direct labor at $13.30 per hour Labor price variances Labor quantity variance -80601 Favorable Favorable VIDEO: SIMILAR EXERCISE VIDEO: APPLIED SKILLS LINK TO TEXT LINK TO TEXTExplanation / Answer
Answer c.
Actual Hours = 40,300
Number of units produced = 10,700
Standard hour per unit = 3.90
Standard Rate per hour = $13.30
Standard Hours = Number of units produced * Standard hour per unit
Standard Hours = 10,700 * 3.90
Standard Hours = 41,730
Labor Quantity Variance = Standard Rate per hour * (Actual Hours - Standard Hours)
Labor Quantity Variance = $13.30 * (40,300 - 41,730)
Labor Quantity Variance = -$19,019 Favorable
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