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During January Ajax Co

Question 188

Essay

During January Ajax Co. incurs 1850 hours of direct labor at an hourly cost of $11.80 in producing 1000 units of its finished product. Ajax standard labor cost per unit of output is $22
(2 hours x $11.00).
Instructions
Compute the total price and quantity labor variances for Ajax Co. for January.

Correct Answer:

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Total labor variance = $170 F ...

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