Bridget Company manufactures candles

The standard direct materials quantity required to produce one large candle is 1 pound at a cost of $5 per pound. Every candle requires 2 direct labor hours at a standard cost of $3 per direct labor hour. During November, 7,200 large candles were produced using 7,500 pounds costing $45,000. At the end of November, an examination of the labor cost records showed that the company used 15,000 direct labor hours (DLHr) at a cost of $4 per hour.

Using the format below, prepare an analysis of the direct labor cost variances.

What will be an ideal response


Note:
Standard quantity = 7,200 candles x 2 DLHr = 14,400 DLHr

Business

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