Gala Enterprises reports the following information regarding the production on one of its products for the month. Compute the direct labor cost variance, the direct labor rate variance, the direct labor efficiency variance and identify each as either favorable or unfavorable.
$\begin{array} { l l }
\text { Direct labor standard (2 hrs. @ } \$ 15 / \mathrm { hr } . ) & \$ 30 \text { per finished unit } \
\text { Actual direct labor hours } & 60,800 \mathrm { hrs } . \
\text { Actual finished units produced } & 30,000 \text { units } \
\text { Actual cost of direct labor } & \$ 905,920
\end{array}$

Question

Gala Enterprises reports the following information regarding the production on one of its products for the month. Compute the direct labor cost variance, the direct labor rate variance, the direct labor efficiency variance and identify each as either favorable or unfavorable.
$\begin{array} { l l } 
\text { Direct labor standard (2 hrs. @ } \$ 15 / \mathrm { hr } . ) & \$ 30 \text { per finished unit } \
\text { Actual direct labor hours } & 60,800 \mathrm { hrs } . \
\text { Actual finished units produced } & 30,000 \text { units } \
\text { Actual cost of direct labor } & \$ 905,920
\end{array}$

Quizplus · Accepted Answer

The Answer of Gala Enterprises reports the following information regarding the production on one of its products for the month. Compute the direct labor cost variance, the direct labor rate variance, the direct labor efficiency variance and identify each as either favorable or unfavorable.
$\begin{array} { l l } 
\text { Direct labor standard (2 hrs. @ } \$ 15 / \mathrm { hr } . ) & \$ 30 \text { per finished unit } \
\text { Actual direct labor hours } & 60,800 \mathrm { hrs } . \
\text { Actual finished units produced } & 30,000 \text { units } \
\text { Actual cost of direct labor } & \$ 905,920
\end{array}$

Gala Enterprises Reports the Following Information Regarding the Production on One