Question

Europa Company manufactures only one product. Presented below is direct labor information for November. Standard direct...

Europa Company manufactures only one product. Presented below is direct labor information for November.

Standard direct labor hours per unit of product 3.30
Number of finished units produced 6,100
Standard wage rate per direct labor hour (SP) $ 19.30
Total direct labor payroll for the period $ 362,250
Actual wage rate per direct labor hour worked (AP) $ 16.10

The direct labor rate variance for November (to the nearest dollar) was:

Homework Answers

Answer #1

Answer:

Direct labor rate variance = Actual direct labor hours [AR-SR]

                    = 22500 [16.10 - 19.30]

                    = 22500 *- 3.2

                    = - 72000 Favorable   (enter as 72000 F as positive value)

Working:

Actual Hours worked = Actual labor cost /Actual wage rate per direct labor hour worked

                    = 362250 / 16.10

                    = 22500 DLH

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