Tippi Company produces lamps that require 2.25 standard hours per unit at a standard hourly rate of $15.00 per hour. Production of 7,700 units required 17,550 hours at an hourly rate of $15.20 per hour.
What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance?

Question

Tippi Company produces lamps that require 2.25 standard hours per unit at a standard hourly rate of $15.00 per hour. Production of 7,700 units required 17,550 hours at an hourly rate of $15.20 per hour.​
What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance?

Quizplus · Accepted Answer

The Answer of Tippi Company produces lamps that require 2.25 standard hours per unit at a standard hourly rate of $15.00 per hour. Production of 7,700 units required 17,550 hours at an hourly rate of $15.20 per hour.​
What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance?

Tippi Company Produces Lamps That Require 2