Question

Swan Company has a direct labor standard of 35 hours per unit of output. Each employee...

Swan Company has a direct labor standard of 35 hours per unit of output. Each employee has a standard wage rate of $34 per hour. During March, employees worked 15,100 hours. The direct labor rate variance was $11,170 favorable, and the direct labor efficiency variance was $17,400 unfavorable. What was the actual labor costs? $502,230 $524,570 $513,400 $496,000

Homework Answers

Answer #2

$ 502230

Standard

35 hours @ $ 34 per hour

Actual hours worked = 15100 hours

Direct labour rate variance = $ 11170 f

( Standard rate - actual rate ) * actual hours

( 34- x ) * 15100 = 11170

( 34-x ) = 11170/15100

= $ 33.26

Direct labour efficiency variance = $ 17400 u

( Standard hours - actual hours) * standard rate

( x - 15100) * 34 = - 17400

( x- 15100) = -17400/34

= 15612 hours

Actual labour costs =

Actual hours * actual rate

15100* 33.26 = $ 502226

answered by: anonymous
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