Ask Question
13 August, 01:28

The following data relate to direct labor costs for the current period: Standard costs 7,300 hours at $11.60 Actual costs 6,000 hours at $10.40 The direct labor time variance is a.$15,080 unfavorable b.$13,520 favorable c.$13,520 unfavorable d.$15,080 favorable

+1
Answers (1)
  1. 13 August, 05:28
    0
    d.$15,080 favorable

    Explanation:

    The formula and the computation of the direct labor time variance is shown below:

    Direct Labor Efficiency Variance

    = (Standard Hours allowed - Actual hours) * Standard rate

    where,

    Standard hours allowed = 7,300 hours

    Actual hours = 6,000 hours

    And, the standard rate is $11.60

    So, the direct labor time variance is

    = (7,300 hours - 6,000 hours) * $11.60

    = 1,300 hours * $11.60

    = 15,080 favorable
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The following data relate to direct labor costs for the current period: Standard costs 7,300 hours at $11.60 Actual costs 6,000 hours at ...” 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.
Search for Other Answers