The standards for product A22G specify 8.2 direct labor-hours per unit at $11.90 per direct labor-hour.Last month 200 units of product A22G were produced using 1,700 direct labor-hours at a total direct labor wage cost of $20,060.

Required:

a.What was the labor rate variance for the month?
b.What was the labor efficiency variance for the month?
c.Prepare a journal entry to record direct labor costs during the month,including the direct labor variances.

Question

The standards for product A22G specify 8.2 direct labor-hours per unit at $11.90 per direct labor-hour.Last month 200 units of product A22G were produced using 1,700 direct labor-hours at a total direct labor wage cost of $20,060.

Required:

a.What was the labor rate variance for the month?
b.What was the labor efficiency variance for the month?
c.Prepare a journal entry to record direct labor costs during the month,including the direct labor variances.

Quizplus · Accepted Answer

The Answer of The standards for product A22G specify 8.2 direct labor-hours per unit at $11.90 per direct labor-hour.Last month 200 units of product A22G were produced using 1,700 direct labor-hours at a total direct labor wage cost of $20,060.

Required:

a.What was the labor rate variance for the month?
b.What was the labor efficiency variance for the month?
c.Prepare a journal entry to record direct labor costs during the month,including the direct labor variances.

The Standards for Product A22G Specify 8