Question

Wayland Company has a standard of 5.8 hours of labor per unit, at $11.40 per hour. In producing 720 units, Wayland used 4,200 hours of labor at a total cost of $45,000. What is Wayland's labor price variance?

Answer #1

Direct labor rate variance = (SR ? AR) × AH

Where,

SR is the standard direct labor rate = 11.40

AR is the actual direct labor rate = (45000/4200) = 10.71

AH are the actual direct labor hours = 4200 hours

Let’s put the values in the formula

Direct labor rate variance = (11.40 – 10.71)* 4200

= **2898 Favorable**

--------------------------------------------------------------------------------------------------------------------------

**Feel free to comment if you need further
assistance****J**

**Pls rate this answer if you found it
useful.**

The following labor standards have
been provided by the Rand Company:
Standard hours per unit: 2
Standard cost per hour: $12
During the most recent month Rand
produced 2,000 units and used 3,900 labor hours at a cost of
$47,580.
Calculate the direct labor price
variance and the efficiency variance.

Mordica Company’s standard labor cost per unit of output is
$33.60 (3.00 hours x $11.20 per hour). During August, the company
incurs 3,045 hours of direct labor at an hourly cost of $11.70 per
hour in making 1,000 units of finished product. Compute the total,
price, and quantity labor variances. (Round answers to 2 decimal
places, e.g. 52.75.) Total labor variance $ Labor price variance $
Labor quantity variance $

Bellingham Company produces a product that requires 2 standard
direct labor hours per unit at a standard hourly rate of $20.00 per
hour. If 5,200 units used 10,000 hours at an hourly rate of $20.80
per hour, what is the direct labor (a) rate variance, (b) time
variance, and (c) cost variance? Enter a favorable variance as a
negative number using a minus sign and an unfavorable variance as a
positive number. a. Direct labor rate variance $ b. Direct...

Bellingham Company produces a product that requires 10 standard
direct labor hours per unit at a standard hourly rate of $22.00 per
hour. If 4,300 units used 41,300 hours at an hourly rate of $23.10
per hour, what is the direct labor (a) rate variance, (b) time
variance, and (c) cost variance? Enter a favorable variance as a
negative number using a minus sign and an unfavorable variance as a
positive number. a. Direct labor rate variance $ Unfavorable b....

Direct Labor Variances Bellingham Company produces a product
that requires 3 standard hours per unit at a standard hourly rate
of $9.00 per hour. If 3,500 units required 10,700 hours at an
hourly rate of $8.82 per hour, what is the direct labor (a) rate
variance, (b) time variance, and (c) total direct labor cost
variance? Enter a favorable variance as a negative number using a
minus sign and an unfavorable variance as a positive number. a.
Direct labor rate...

The following labor standards have been established for a
particular product:
Standard labor-hours per unit of output 2.4 hours
Standard labor rate $13.95 per hour
The following data pertain to operations concerning the product for
the last month:
Actual hours worked 4,300 hours
Actual total labor cost $50,720
Actual output 2,900 units
What is the labor rate variance for the month?
$9,265 F
$10,847 F
$3,360 F
$3,360 U
Jackson Industries uses a standard cost system in which direct...

Bellingham Company produces a product that requires 8 standard
direct labor hours per unit at a standard hourly rate of $14.00 per
hour. If 5,600 units used 45,700 hours at an hourly rate of $14.28
per hour, what is the direct labor (a) rate variance, (b) time
variance, and (c) cost variance? Enter a favorable variance as a
negative number using a minus sign and an unfavorable variance as a
positive number.
a. Direct labor rate variance
$fill in the...

Lewis Company’s standard labor cost of producing one unit of
Product DD is 3.70 hours at the rate of $10.60 per hour. During
August, 40,400 hours of labor are incurred at a cost of $10.75 per
hour to produce 10,800 units of Product DD. (a) Compute the total
labor variance. Total labor variance $enter the Total labor
variance in dollars select an option (b) Compute the labor price
and quantity variances. Labor price variance $enter a dollar amount
select an...

Question 3 Mordica Company’s standard labor cost per unit of
output is $21.00 (2.10 hours x $10.00 per hour). During August, the
company incurs 2,772 hours of direct labor at an hourly cost of
$11.00 per hour in making 1,200 units of finished product. Compute
the total, price, and quantity labor variances. (Round answers to 2
decimal places, e.g. 52.75.) Total labor variance $ Labor price
variance $ Labor quantity variance $

The standard direct labor cost per unit for a company was $39 (=
$26 per hour × 1.5 hours per unit). During the period, actual
direct labor costs amounted to $266,400, 10,400 labor-hours were
worked, and 5,800 units were produced.
Required:
Compute the direct labor price and efficiency variances for the
period. (Indicate the effect of each variance by selecting
"F" for favorable, or "U" for unfavorable. If there is no effect,
do not select either option.)

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 5 minutes ago

asked 16 minutes ago

asked 32 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago