7 The following direct labor standards have been established for a particular product: 6.25 hours per unit $14.25 per hour Standard direct labor-hours: Standard direct labor wage rate: The following data pertains to last month's operations: Actual out of product: Actual direct labor hours worked: Actual direct labor wages paid: 1,600 units 9,500 $132,050 REQUIRED: Using the standard cost model, compute each of the following, show all your calculations 7a What was the labor rate variance for the month? Is this variance favorable or unfavorable?
7 The following direct labor standards have been established for a particular product: 6.25 hours per unit $14.25 per hour Standard direct labor-hours: Standard direct labor wage rate: The following data pertains to last month's operations: Actual out of product: Actual direct labor hours worked: Actual direct labor wages paid: 1,600 units 9,500 $132,050 REQUIRED: Using the standard cost model, compute each of the following, show all your calculations 7a What was the labor rate variance for the month? Is this variance favorable or unfavorable?
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...
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