5. Protic Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standards for the prime costs of one unit of product: Standard Quantity Standard Price Standard Cost Direct labor 2.6 hours $44.00/hour $114.40 During April, the total factory wages for April were $3,200,000, among those 90% were direct labor cost. The company manufactured 25,000 units of product during April using 64,000 direct labor hours. Required: a) What is the direct labor rate and efficiency variance for April?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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5. Protic Company employs a standard cost system in which direct materials inventory is carried
at standard cost. The company has established the following standards for the prime costs of one
unit of product:
Standard Quantity
Standard Price Standard Cost
Direct labor 2.6 hours
$44.00/hour
$114.40
During April, the total factory wages for April were $3,200,000, among those 90% were direct
labor cost. The company manufactured 25,000 units of product during April using 64,000 direct
labor hours.
Required:
a) What is the direct labor rate and efficiency variance for April?
Transcribed Image Text:5. Protic Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standards for the prime costs of one unit of product: Standard Quantity Standard Price Standard Cost Direct labor 2.6 hours $44.00/hour $114.40 During April, the total factory wages for April were $3,200,000, among those 90% were direct labor cost. The company manufactured 25,000 units of product during April using 64,000 direct labor hours. Required: a) What is the direct labor rate and efficiency variance for April?
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