Q. Marlo Enterprises produces radon mitigation pumps. Information pertaining to the company’s monthly direct labor usage is provided below: Standard labor rate per hour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16 Standard hours allowed per radon mitigation pump . . . . . . . . . . . . . . . . . . . . . . . 0.5 hours Actual pumps produced during the current month . . . . . . . . . . . . . . . . . . . . . . . . 9,000 units Actual labor hours worked during the current month . . . . . . . . . . . . . . . . . . . . . . 3,600 hours Actual labor cost for the current month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $64,800 a. Compute the company’s labor rate variance.
Q. Marlo Enterprises produces radon mitigation pumps. Information pertaining to the company’s
monthly direct labor usage is provided below:
Standard labor rate per hour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16
Standard hours allowed per radon mitigation pump . . . . . . . . . . . . . . . . . . . . . . . 0.5 hours
Actual pumps produced during the current month . . . . . . . . . . . . . . . . . . . . . . . . 9,000 units
Actual labor hours worked during the current month . . . . . . . . . . . . . . . . . . . . . . 3,600 hours
Actual labor cost for the current month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $64,800
a. Compute the company’s labor rate variance.
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