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Question 4[18 points] Southgate Inc. made 35,500 units during July, using 32,300 direct...

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Accounting

Question 4[18 points]
Southgate Inc. made 35,500 units during July, using 32,300 direct labor hours. They expected to use 32,000 hours per the standard cost
card. Their employees were paid $19 per hour for the month of July. The standard cost card uses $18.75 as the standard hourly rate.
a) Compute the direct labor rate variance for the month of July and determine whether it is favorable or unfavorable.
o) Compute the direct labor time variance for the month of July and determine whether it is favorable or unfavorable.
c) Compute the total direct labor variance for the month of July and determine whether it is favorable or unfavorable.
Assume that the new standard rate per hour is $16.50.
d) Compute the new direct labor rate variance and determine whether it is favorable or unfavorable.
e) Compute the new direct labor time variance and determine whether it is favorable or unfavorable.
Compute the new total direct labor variance and determine whether it is favorable or unfavorable.
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