Question

Direct Labor Variances Dvorak Company produces a product that requires 3 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) total direct labor cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance $ 3,400 Favorable b. Direct labor time variance $ 3,400 Favorable c. Total direct labor cost $ variance 4,800 Favorable

          Direct Labor Variances
Dvorak Company produces a product that requires 3 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) total direct labor cost variance? Enter a favorable variance as a
negative number using a minus sign and an unfavorable variance as a positive number.
a. Direct labor rate variance
$
3,400
Favorable
b. Direct labor time variance
$
3,400
Favorable
c. Total direct labor cost
$
variance
4,800
Favorable

Show more…

Direct Labor Variances
Dvorak Company produces a product that requires 3 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 of16.50 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) total direct labor cost variance? Enter a favorable variance as a
negative number using a minus sign and an unfavorable variance as a positive number.
a. Direct labor rate variance
3,400
Favorable
b. Direct labor time variance
3,400
Favorable
c. Total direct labor cost
variance
4,800
Favorable

Added by James M.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Adi S

08/17/2023

Step 1

The standard direct labor cost per unit can be calculated by multiplying the standard hours per unit (3 hours) by the standard hourly rate ($17 per hour). Standard direct labor cost per unit = 3 hours * $17 per hour = $51 per unit Show more…

Show all steps

lock

Thanks for your feedback!

Texts: I need help with this question. Thank you. Direct Labor Variances Dvorak Company produces a product that requires 3 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 rate variance, time variance, and total direct labor cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance $3,400 Favorable b. Direct labor time variance $3,400 Favorable c. Total direct labor cost variance $4,800 Favorable

Play audio

Feedback

Powered by NumerAI

Adi S and 92 other subject Principles of Accounting educators are ready to help you.

Ask a new question

Labs

Want to see this concept in action?

NEW

Explore this concept interactively to see how it behaves as you change inputs.

View Labs

Recommended Videos

Recommended Textbooks

Transcript

Ace is your personal tutor. It breaks down any question with clear steps so you can learn.

Start Using Ace

Continue solving this problem

Create a free account to:

View full step-by-step solution
Ask follow-up questions with Ace AI
Save progress and study later