Lewis Company's standard labor cost of producing one unit of Product DD is 3.60 hours at the rate of $14 per hour. During August, 43,900 hours of labor are incurred at a cost of $14.20 per hour to produce 12,100 units of Product DD. 1. Compute the total labor variance. 2. Compute the labor price and quantity variances. 3. Compute the labor price and quantity variances, assuming the standard is 4 hours of direct labor at $14.40 per hour.
Lewis Company's standard labor cost of producing one unit of Product DD is 3.60 hours at the rate of $14 per hour. During August, 43,900 hours of labor are incurred at a cost of $14.20 per hour to produce 12,100 units of Product DD. 1. Compute the total labor variance. 2. Compute the labor price and quantity variances. 3. Compute the labor price and quantity variances, assuming the standard is 4 hours of direct labor at $14.40 per hour.
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 9PB: Ribcos labor cost information for making its only product for March is as follows: A. What is the...
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