ABC Company has set the following standards for one unit of product: Direct materials: 0.5 pounds a $1.00 per pound, Direct labor: 1 hour a $10.00 per hour. The company produced 35,000 units and had the following actual costs: Direct materials: 18,000 pounds at a total cost of $17,280; Direct labor: 36,000 hours at a total cost of $374,400. Compute the direct labor rate variance, O $10,000 F O $10,000 U O $14,400 F O $14,400 U
ABC Company has set the following standards for one unit of product: Direct materials: 0.5 pounds a $1.00 per pound, Direct labor: 1 hour a $10.00 per hour. The company produced 35,000 units and had the following actual costs: Direct materials: 18,000 pounds at a total cost of $17,280; Direct labor: 36,000 hours at a total cost of $374,400. Compute the direct labor rate variance, O $10,000 F O $10,000 U O $14,400 F O $14,400 U
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 31P: Misterio Company uses a standard costing system. During the past quarter, the following variances...
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