Question

Minmax Co.'s direct labor information for February is as follows: Direct labor hours worked (AQ) 33,600 Standard direct labor hours for units manufactured (SQ) 35,000 Unfavorable direct labor rate variance$16,800 Total payroll for direct labor$487,200 The direct labor efficiency variance in February (to the nearest dollar) was:

The direct labor efficiency variance in February (to the nearest dollar) was:Multiple Choice$14,193 favorable.$14,700 favorable.$14,112 favorable.$19,600 favorable.$14,599 favorable.

Answer 1

Answer- The direct labor efficiency variance in February= $19600 Favorable.

Explanation- Direct Labor Efficiency variance=(Standard hours-Actual hours)*Standard rate per hour

= (35000 hours – 33600 hours)* $14.00 per hour

= $19600 Favorable

Explanation- Direct Labor Price (Rate) variance = (Standard rate – Actual rate) * Actual hours

$16800 U = {Standard rate per hour – ($487200/33600)*33600 hours}   

$16800 U =(Standard rate - $14.50 per hour)*33600 hours

Standard rate per hour = $14.00 per hour