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Category > Accounting Posted 23 May 2017 My Price 7.00

Find the actual number of direct labor hours worked during October

Amanda’s Music manufactures harmonicas. Amanda uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and Amanda has only partial data for October. She knows that the direct labor flexible budget variance for the month was $330 F and that the standard labor price was $10 per hour. A recent pay cut caused a favorable labor price variance of $0.50 per hour. The standard direct labor hours for actual October output were 5,600.

Required

1. Find the actual number of direct labor hours worked during October. First, find the actual direct labor price per hour. Then, determine the actual number of direct labor hours worked by setting up the computation of the direct labor flexible budget variance of $330 F.

2. Compute the direct labor price and efficiency variances. Do these variances suggest the manager may have made any trade-offs? Explain.

 

Answers

Alpha Geek
(8)
Status NEW Posted 23 May 2017 05:05 PM My Price 7.00

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Attachments

file 1495560894-2060687_1_636310297693764558_Labor-variances.xlsx preview (300 words )
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