Red River Corporation reports the following standards for direct labour for the year:
Standard cost per hour $18.50
Standard quantity per finished good 2.5 hours
During the year, 180,000 finished goods were produced. The direct labour efficiency variance was $38,850 favourable. The direct labour flexible budget variance was $700 favourable.
Calculate the following items regarding direct labour for Red River Corporation for the year:
1. Direct labour price variance
2. Standard quantity of direct labour for actual production
3. Actual hours of direct labour incurred for actual production

Question

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The Answer of Red River Corporation reports the following standards for direct labour for the year:
Standard cost per hour $18.50
Standard quantity per finished good 2.5 hours
During the year, 180,000 finished goods were produced. The direct labour efficiency variance was $38,850 favourable. The direct labour flexible budget variance was $700 favourable.
Calculate the following items regarding direct labour for Red River Corporation for the year:
1. Direct labour price variance
2. Standard quantity of direct labour for actual production
3. Actual hours of direct labour incurred for actual production

Red River Corporation Reports the Following Standards for Direct Labour