Question

In: Accounting

Actual quantity of direct labor 5,000 hours Actual direct labor rate $10 per hour Total direct...

Actual quantity of direct labor 5,000 hours

Actual direct labor rate $10 per hour

Total direct labor variance $8,600 Unfavorable .

Direct labor rate variance $4,000 Unfavorable .

Standard hours allowed per unit produced 2 hours

Required: Find the following unknowns.

a. Direct labor efficiency variance

b. Standard rate per direct labor hour

c. Actual quantity produced

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Part a
Total direct labor variance $         8,600 U
Direct labor rate variance $         4,000 U
Direct Labor Efficiency Variance $         4,600 U
Part b
Direct labor rate variance $         4,000 U
(AH*AR)-(AH*SR) $         4,000 U
(5000*10)-(5000*SR) $         4,000 U
50000-(5000*SR) $         4,000 U
50000-4000 5000*SR
SR 46000/5000
Standard Rate per Direct Labor Hour $           9.20
Part c
Direct Labor Efficiency Variance $         4,600 U
(SR*AH)-(SR*SH)
(9.2*5000)-(9.2*SH) $         4,600 U
46000-4600 9.2*SH
Standard Hour 41400/9.2
Standard Hour             4,500 Hours
One Unit need Stadnard Hour                2.00 Hours
Acutal Quantity Produced 4500/2        2,250 Units

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