Williams Corporation reports the following direct labor information for November

Question

Williams Corporation reports the following direct labor information for November:

Required:

Based on these data, what was the number of actual hours worked and what was the labor price variance? (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Actual Hours worked in hours

Labor Price Variance  

Standard rate $ 33.00 per hour Actual rate paid $ 33.70 per hour Standard hours allowed for actual production 44,100 hours Labor efficiency variance $ 207,900 F

Explanation / Answer

Labor efficiency variance = SR*(SH-AH) 207900 = 33*(44100-AH) 6300 = 44100-AH AH = 37800 Number of actual hours worked = 37800 Labor price variance = 37800*(33.7-33)= 26460 U

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