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The Standards for Product A22G Specify 8

Question 6

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The standards for product A22G specify 8.2 direct labor-hours per unit at $11.90 per direct labor-hour.Last month 200 units of product A22G were produced using 1,700 direct labor-hours at a total direct labor wage cost of $20,060.

Required:

a.What was the labor rate variance for the month?
b.What was the labor efficiency variance for the month?
c.Prepare a journal entry to record direct labor costs during the month,including the direct labor variances.

Correct Answer:

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a.Labor rate variance = (AH blured image AR)- (AH blured image S...

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