Question

Superior Company manufactures one product. Presented below is direct labor information for July: Standard direct labor hours per unit: 3.20 Number of units produced: 6,500 Standard wage rate per hour: $24.00 Total direct labor payroll for the month: $462,000 Actual wage rate per hour: $21.00 Required: a. Find the actual direct labor hours worked during July. Provide supporting calculations that are labeled. b. Find the direct labor rate variance for July. Provide supporting calculations that are labeled and state if the variance is favorable or unfavorable. c. Find the direct labor efficiency variance for July. Provide supporting calculations that are labeled and state if the variance is favorable or unfavorable. d. If the direct labor efficiency variance is unfavorable, what types of conditions might be present to cause this?

          Superior Company manufactures one product. Presented below is direct labor information for July:
Standard direct labor hours per unit:  3.20
Number of units produced:  6,500
Standard wage rate per hour:  $24.00
Total direct labor payroll for the month:  $462,000
Actual wage rate per hour:  $21.00
Required:
a. Find the actual direct labor hours worked during July. Provide supporting calculations that
are labeled.
b. Find the direct labor rate variance for July. Provide supporting calculations that are labeled
and state if the variance is favorable or unfavorable.
c. Find the direct labor efficiency variance for July. Provide supporting calculations that are
labeled and state if the variance is favorable or unfavorable.
d. If the direct labor efficiency variance is unfavorable, what types of conditions might be
present to cause this?

Superior Company manufactures one product. Presented below is direct labor information for July:
Standard direct labor hours per unit: 3.20
Number of units produced: 6,500
Standard wage rate per hour: 24.00
Total direct labor payroll for the month:462,000
Actual wage rate per hour: 21.00
Required:
a. Find the actual direct labor hours worked during July. Provide supporting calculations that
are labeled.
b. Find the direct labor rate variance for July. Provide supporting calculations that are labeled
and state if the variance is favorable or unfavorable.
c. Find the direct labor efficiency variance for July. Provide supporting calculations that are
labeled and state if the variance is favorable or unfavorable.
d. If the direct labor efficiency variance is unfavorable, what types of conditions might be
present to cause this?

Added by Denise T.

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