Exercise 23-6 Lewis Company’s standard labor cost of producing one unit of Product DD is 3.1...

Exercise 23-6

Lewis Company’s standard labor cost of producing one unit of Product DD is 3.1 hours at the rate of $12.7 per hour. During August, 42,200 hours of labor are incurred at a cost of $12.80 per hour to produce 13,500 units of Product DD.

(a)

Compute the total labor variance.

Total labor variance $

Unfavorable
Favorable
Neither favorable nor unfavorable

(b)

Compute the labor price and quantity variances.

Labor price variance $

Favorable
Neither favorable nor unfavorable
Unfavorable
Labor quantity variance $

Favorable
Neither favorable nor unfavorable
Unfavorable

(c)

Compute the labor price and quantity variances, assuming the standard is 3.4 hours of direct labor at $12.95 per hour.

Labor price variance $

Neither favorable nor unfavorable
Unfavorable
Favorable
Labor quantity variance $

Neither favorable nor unfavorable
Unfavorable
Favorable

Expert Solution

ekkarill92 answered 1 year ago

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