Rangoon Inc. used 12,000 direct labor hours in its production process at an actual rate of $16.50 per hour and produced 15,000 units of product. The planned production for the period was 17,000 units. The standard for direct labor hours was 0.7 hours per unit of production and the standard rate was $18.00 per hour. Compute the direct labor cost variance. Group of answer choices -$18,000 favorable $9,000 unfavorable -$27,000 favorable $27,000 unfavorable
Rangoon Inc. used 12,000 direct labor hours in its production process at an actual rate of $16.50 per hour and produced 15,000 units of product. The planned production for the period was 17,000 units. The standard for direct labor hours was 0.7 hours per unit of production and the standard rate was $18.00 per hour. Compute the direct labor cost variance. Group of answer choices -$18,000 favorable $9,000 unfavorable -$27,000 favorable $27,000 unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rangoon Inc. used 12,000 direct labor hours in its production process at an actual rate of $16.50 per hour and produced 15,000 units of product. The planned production for the period was 17,000 units. The standard for direct labor hours was 0.7 hours per unit of production and the standard rate was $18.00 per hour.
Compute the direct labor cost variance.
Group of answer choices
-$18,000 favorable
$9,000 unfavorable
-$27,000 favorable
$27,000 unfavorable
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