Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 12

A Direct labor variances
Lo-bed Company produces a product that requires four standard hours per unit at a standard hourly rate of $28.00 per hour. If 4,000 units required 16, 750 hours at an hourly rate of $28.40 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance
B Direct labor variances
Dvorak Company produces a product that requires three standard hours per unit at a standard hourly rate of $17 per hour. If 1,000 units required 2,800 hours at an hourly rate of $16.50 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance