Answered

IDNLearn.com provides a seamless experience for finding and sharing answers. Ask any question and receive timely, accurate responses from our dedicated community of experts.

The following information describes a company’s usage of direct labor in a recent period. The total direct labor cost variance is:

Actual hours used 45,000
Actual rate per hour $15.00
Standard rate per hour $14.50
Standard hours for units produced 47,000

a. $22,500 unfavorable.
b. $22,500 favorable.
c. $6,500 favorable.
d. $29,000 favorable.
e. $6,500 unfavorable.

Sagot :

Facundobuzzettiidn

Answer:

Direct labor rate variance= $22,500 unfavorable

Explanation:

Giving the following information:

Actual hours used 45,000

Actual rate per hour $15.00

Standard rate per hour $14.50

To calculate the direct labor cost (rate) variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (14.5 - 15)*45,000

Direct labor rate variance= $22,500 unfavorable

Your participation means a lot to us. Keep sharing information and solutions. This community grows thanks to the amazing contributions from members like you. IDNLearn.com is your reliable source for accurate answers. Thank you for visiting, and we hope to assist you again.