Lewis Companyâs standard labor cost of producing one unit of Product DD is 3.9 hours at the rate of $13.0 per hour. During August, 42,000 hours of labor are incurred at a cost of $13.20 per hour to produce 10,600 units of Product DD. (a) Compute the total labor variance. Total labor variance $ (b) Compute the labor price and quantity variances. Labor price variance $ Labor quantity variance $ (c) Compute the labor price and quantity variances, assuming the standard is 4.2 hours of direct labor at $13.40 per hour. Labor price variance $ Labor quantity variance
Lewis Companyâs standard labor cost of producing one unit of Product DD is 3.9 hours at the rate of $13.0 per hour. During August, 42,000 hours of labor are incurred at a cost of $13.20 per hour to produce 10,600 units of Product DD. (a) Compute the total labor variance. Total labor variance $ (b) Compute the labor price and quantity variances. Labor price variance $ Labor quantity variance $ (c) Compute the labor price and quantity variances, assuming the standard is 4.2 hours of direct labor at $13.40 per hour. Labor price variance $ Labor quantity variance
Related questions
topaz company makes one product and has set the followingstandards for materials and labor:
| direct materials | direct labor | |
| standard quantity or hours per unit | ? pounds | 2.5 hours |
| standard price or rate | ? per pound | $9.00 per hour |
| standard cost per unit | ? | $22.50 |
during the past month, the company purchased 6,000 pounds ofdirect materials at a cost of $16,500. all of this material wasused in the production of 1,400 units of product. direct labor costtotaled $28,500 for the month. the following variances have beencomputed:
| materials quantity variance | $1,200 U |
| total materials spending variance | $300 F |
| labor efficiency variance | $4,500 F |
for direct labor:
a. compute the actual direct labor cost per hour for themonth
b. compute the labor rate variance
