Solved

The Following Labour Standards Have Been Established for a Particular

Question 211

Essay

The following labour standards have been established for a particular product:
 Standard labour hours per unit of output 2.8 hours  Standard labour rate $11.50 per hour \begin{array}{|l|r|}\hline \text { Standard labour hours per unit of output } & 2.8 \text { hours } \\\hline \text { Standard labour rate } & \$ 11.50 \text { per hour } \\\hline\end{array}
The following data pertain to operations concerning the product for the last month:
 Actual hours worked 6,900 hours  Actual total labour cost $80,385 Actual output 2,300 units \begin{array}{|l|r|}\hline \text { Actual hours worked } & 6,900 \text { hours } \\\hline \text { Actual total labour cost } & \$ 80,385 \\\hline \text { Actual output } & 2,300 \text { units } \\\hline\end{array}
Required:
a)What was the labour rate variance for the month?
b)What was the labour efficiency variance for the month?

Correct Answer:

verifed

Verified

Labour rate variance = (AH *AR)- (AH * S...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents