The following information is for direct labor cost for X Company for 2016: 6,810

Question

The following information is for direct labor cost for X Company for 2016:

6,810 units

What was the direct labor flexible budget variance for 2016 (a positive number means a favorable variance; a negative number means an unfavorable variance)?

Budgeted labor hours per unit of product 2.3 Budgeted hourly wage rate $11.10 Budgeted production 5,740 units Actual labor hours per unit of product 2 Actual hourly wage rate $11.40 Actual production

6,810 units

What was the direct labor flexible budget variance for 2016 (a positive number means a favorable variance; a negative number means an unfavorable variance)?

Explanation / Answer

Direct labor flexible budget variance = (6810*2.3*11.1)-(6810*2*11.4)= 18591.30 or 18591

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