Standard Direct Labor Hours allowed per unit Standard Direct Labor Rate Selected

Question

Standard Direct Labor Hours allowed per unit Standard Direct Labor Rate Selected results for the most recent period are: cost card: 4.5 DLHs ? per DLH Budgeted Production Actual Production Actual Direct Labor Cost 125,000 Actual Direct Labor Hours Labor Rate Variance Labor Spending VarianceS 4,150 Favorable 2.200 units 2,500 units 11,800 hours The Labor Rate Variance is A. $ 4,150.00 Favorable B S6.314.00 Unfavorable C. s 10.464 00 Favorable D. 1,758.22 Unfavorable E. Nonc of the above 16 Juncau Industries makes light construction equipment. The standard for a particular device calls for 24 direct labor-hours. During a recent period 850 devices were made. The labor rate variance was $3.,176 favorable and the labor efficiency variance was $640 unfavorable. Total labor cost was $318,864. What is Juncau's actual direct labor wage rate (sclect the closest numbery? A. S B. S C. s D. $ E. None of the above 16.00 per DLH 15.23 per DLH 15.26 per DLH 15.60 per DLH

Explanation / Answer

15) Labour spending variance = standard cost-actual cost

4150 = X-125000

X(Standard cost) = 129150

Standard rate = 129150/11250 = 11.48 per unit

Labour rate variance = (11.48*11800-125000) = 10464 F

so answer is c) $10,464.00 favorable

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