
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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How much is the direct labor price variance?

Transcribed Image Text:The following information describes a company's usage of direct
labor in a recent period:
Actual direct labor hours used
Actual rate per hour
Standard rate per hour
44,000
$20
$18
Standard hours for units produced 42,000
How much is the direct labor price variance?
A. $84,000 favorable
B. $88,000 favorable
C. $88,000 unfavorable
D. $84,000 unfavorable
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- Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period That Differs from the Data Period Refer to the information for Pizza Vesuvio on the previous page. Assume that this information was used to construct the following formula for monthly labor cost. TotalLaborCost=5,237+(7.40EmployeeHours) Required: Assume that 4,000 employee hours are budgeted for the coming year. Use the total labor cost formula to make the following calculations: 1. Calculate total variable labor cost for the year. 2. Calculate total fixed labor cost for the year. 3. Calculate total labor cost for the coming year. Use the following information for Brief Exercises 3-17 through 3-20: Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:arrow_forwardThe following information describes a company usage solve this questionarrow_forwardi want to correct answerarrow_forward
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