After evaluating Null Company's manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $15.50 per hour for the labor rate. During October, the company uses 11,500 hours of direct labor at a $180,550 total cost to produce 6,100 units of product. In November, the company uses 22,500 hours of direct labor at a $355,500 total cost to produce 6,500 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable.
+5
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “After evaluating Null Company's manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » After evaluating Null Company's manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $15.50 per hour for the labor rate.