Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 42

A popular product of Loring Glassworks is a hand-decorated vase. The company's standard cost system calls for.75 hours of direct labor per vase, at a standard wage rate of $8.25. During September. Loring produced 4,000 vases at an actual direct labor cost of $24,464 for 2,780 direct labor hours. What is the actual wage rate per hour? Compute the labor rate and efficiency variances for the month. Was paying workers the actual wage rather than the standard wage an efficient strategy for Loring?