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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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