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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 2BE: Direct labor variances Bellingham Company produces a product that requires 4 standard direct labor...
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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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