Hickam Company Makes One Product,for Which It Has Developed the Following

Essay

Hickam Company makes one product,for which it has developed the following standard for labor: each unit should require 1.50 hours at $12/hour.In April,Hickam made 10,000 units,using 1.65 hours per unit at a cost of $11.50 per hour.
Required:
(a)Determine the total labor variance and indicate whether it is favorable or unfavorable.
(b)Determine the labor price variance and indicate whether it is favorable or unfavorable.
(c)Determine the labor usage variance and indicate whether it is favorable or unfavorable.