Southern Company established a direct labor standards of 0.5 hour per unit at $12 per hour for one of its products.In March,Southern used 12,000 direct labor hours,and the total amount paid to direct labor employees was $143,400.
Required:
Based on this information,
(a)Which variance can you calculate?
(b)What is the dollar amount of the variance?
(c)Is the variance favorable or unfavorable?
(d)Do you consider the variance to be sufficiently material that managers should investigate to discover the cause of the variance?

Question

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The Answer of Southern Company established a direct labor standards of 0.5 hour per unit at $12 per hour for one of its products.In March,Southern used 12,000 direct labor hours,and the total amount paid to direct labor employees was $143,400.
Required:
Based on this information,
(a)Which variance can you calculate?
(b)What is the dollar amount of the variance?
(c)Is the variance favorable or unfavorable?
(d)Do you consider the variance to be sufficiently material that managers should investigate to discover the cause of the variance?

Southern Company Established a Direct Labor Standards of 0