Use the following cost information to calculate the direct labor rate and efficiency variances and indicate whether they are favorable or unfavorable.
$\begin{array}{lc}
\text { Actual costs and quantities: } & \
\text { Direct labor cost incurred } & \$ 360,000 \
\text { Direct labor hours used } & 20,000 \text { hours } \
\text { Units produced } & 45,000 \text { units } \
\text { Standard costs and quantities: } & \
\text { Direct labor rate per hour } & \$ 16.50 \
\text { Hours to produce one unit } & 0.5 \text { hours }
\end{array}$

Question

Use the following cost information to calculate the direct labor rate and efficiency variances and indicate whether they are favorable or unfavorable.
 $\begin{array}{lc}
\text { Actual costs and quantities: } & \
\text { Direct labor cost incurred } & \$ 360,000 \
\text { Direct labor hours used } & 20,000 \text { hours } \
\text { Units produced } & 45,000 \text { units } \
\text { Standard costs and quantities: } & \
\text { Direct labor rate per hour } & \$ 16.50 \
\text { Hours to produce one unit } & 0.5 \text { hours }
\end{array}$

Quizplus · Accepted Answer

The Answer of Use the following cost information to calculate the direct labor rate and efficiency variances and indicate whether they are favorable or unfavorable.
 $\begin{array}{lc}
\text { Actual costs and quantities: } & \
\text { Direct labor cost incurred } & \$ 360,000 \
\text { Direct labor hours used } & 20,000 \text { hours } \
\text { Units produced } & 45,000 \text { units } \
\text { Standard costs and quantities: } & \
\text { Direct labor rate per hour } & \$ 16.50 \
\text { Hours to produce one unit } & 0.5 \text { hours }
\end{array}$

Use the Following Cost Information to Calculate the Direct Labor