MIAMI Company has set the following standards related to the prime costs for its single product: standard quantity standard price direct materials 11 pounds per unit $3.00 per pound direct labor 8 hours per unit $14.00 per hour MIAMI Company reported the following information for the month of September: 1. The direct material quantity variance was $7,380 unfavorable. 2. The direct labor rate variance was $4,410 favorable. 3. 8,140 units were produced. 4. Direct materials were purchased at a price of $3.75 per pound. 5. The actual rate paid to direct laborers was $13.93 per hour. 6. At September 1, the direct materials inventory consisted of 8,000 pounds. At September 30, the direct materials inventory totaled 5,000 pounds. Calculate the direct labor efficiency variance for September. If the variance is favorable, place a minus sign in front of your answer (i.e., -1000). If the variance is unfavorable, enter your answer as a number (i.e., 1000).
Please label your answer as answer=.......................
Standard time = 8 hours per unit
Actual output = 8,140 units
Standard time for actual output = Standard time x Actual output
= 8 x 8,140
= 65,120 hours
Actual rate = $13.93 per hour
Standard rate = $14 per hour
Direct labor rate variance = Actual time x (Standard rate - Actual rate)
4,410 = Actual time x ( 14 - 13.93)
Actual time = 63,000 hours
Direct labor efficiency variance = Standard rate x (Standard time - Actual time)
= 14 x (65,120 - 63,000)
= - $29,680
Answer = - $29,680
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