Maurice Tutor

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Category > Accounting Posted 29 Jul 2017 My Price 3.00

Greeson Clothes Company

direct labor variances

 

The Greeson Clothes Company produced 25,000 units during June of the current year. The Cutting Department used 6,380 direct labor hours at an actual rate of $10.90 per hour. The Sewing Department used 9,875 direct labor hours at an actual rate of $11.12 per hour. Assume there were  no  work  in  process  inventories  in  either  department  at the beginning or end of the month. The  standard  labor  rate  is  $11.00.  The  standard labor time for the Cutting and Sewing departments is 0.25 hour and 0.4 hour per unit, respectively.

a.     Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department.

b.                             Interpret your results.

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Maurice Tutor
(5)
Status NEW Posted 29 Jul 2017 09:07 PM My Price 3.00

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