Labor efficiency variance = Standard rate *(standard hours for actual output - actual hours) Labor...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Labor efficiency variance = Standard rate *(standard hours for actual output - actual hours)
Labor efficiency variance = 11*(0.3*3200 - 500)
Labor efficiency variance = 11*(960 - 500)
Labor efficiency variance = 11*(460)
Labor efficiency variance = 5060 F
Why is my answer wrong?
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours 6.0 ounces 0.3 hours 0.3 hours Standard Cost Per Unit $18.00 $ 3.30 $ 2.70 Standard Price or Rate $ 3.00 per ounce $ 11.00 per hour $ 9.00 per hour Direct materials Direct labor Variable overhead The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 3,600 units 3,200 units 21,000 ounces 22,100 ounces 500 hours $ 42,300 $ 13,600 $ 3,800 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for June is
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
