Standard and actual costs for direct labor for the manufacture of 1,500 units of product were as follows: Actual costs Standard costs 450 hours @ $17

Accounting Oct 07, 2020

Standard and actual costs for direct labor for the manufacture of 1,500 units of product were as follows:

Actual costs
Standard costs
450 hours @ $17.00
455 hours @ $16.50

Determine the (a) time variance, (b) rate variance, and (c) total direct labor cost variance. Round your answers to two
decimal places.
a. Time variance $[.._ 82.5
b. Rate variance
c. Total direct labor cost variance

Expert Solution

b.)

Direct labor rate variance = standard cost of labor for actual hours worked - actual cost of labor for actual hours worked

= standard rate * actual hours - actual rate * actual hours

=16.50* 450- 17* 450

= 7,425- 7650

= -225 (unfavorable)

c.)

Total direct labor cost variance= Time variance+ Direct labor rate variance

= 82.5+ (-225)

= 142.5 Unfavorable

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote