Maurice Tutor

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Category > Accounting Posted 24 Aug 2017 My Price 5.00

Layner Company

Layner Company uses a standard costing system. During the past quarter, the follow- ing variances were computed:

 

Variable overhead efficiency variance                    $ 8,000 U Labor efficiency variance                                   20,000 U

 

Labor rate variance                                             6,000 U

 

Layner applies variable overhead using a standard rate of $2 per direct labor hour allowed. Four direct labor hours are allowed per unit produced (only one type of product is manufactured). During the quarter, Layner used 20 percent more direct labor hours than should have been used.

 

 

 

Required

 

1.    What were the actual direct labor hours worked? The total hours allowed?

 

2.    What is the standard hourly rate for direct labor? The actual hourly rate?

 

3.    How many actual units were produced?

 

 

 

 

 

 

 

 

 

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 24 Aug 2017 10:08 PM My Price 5.00

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