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.
Direct labor cost variance:
Actual units at actual cost = $905,920
Standard units at standard cost = 30,000 * 2 * $15.00 = $900,000
Labor cost variance = $5,920 unfavorable
Direct labor rate variance
Actual cost = $905,920
AH * SR = (60,800 * $15.00) = $912,000
Direct labor rate variance = $6,080 favorable
Direct labor efficiency variance
AH * SR = (60,800 * $15.00) = $912,000
SH * SR = (30,000 * 2 * $15.00) = $900,000
Direct labor efficiency variance = $12,000 unfavorable
You might also like to view...
When determining how to present yourself to target employers, an effective exercise that helps you develop a résumé is what?
A) Writing a list of skills and abilities B) Writing the story of you C) Keeping a list of all potential employers you want to contact D) Determining which stepping stone opportunities will be most effective E) Developing an organizational plan
A Goodwill from Consolidation account may rise when a parent acquires a subsidiary company's common stock at a price in excess of the stock's book value
Indicate whether the statement is true or false
The fee paid by a retailer to a credit card company is considered a contra-revenue account by the retailer
Indicate whether the statement is true or false
________________ are groups that may be formed based on age, sex, or common interest.
Fill in the blank(s) with the appropriate word(s).