Exercise 617 Bramble Incasements manufactures protective cas

Exercise 6-17 Bramble Incasements manufactures protective cases for MP3 players. During November, the company\'s workers clocked 710 more direct labor hours than the flexible budget amount of 25,590 hours to complete 112,900 cases for the Christmas season. All workers were paid $9.34 per hour, which was $0.58 more than the standard wage rate. Calculate Bramble\'s direct labor efficiency variance. (If variance is zero, select \"Not Applicable\" and enter 0 for the amounts. Direct labor efficiency variance $ Click if you would like to Show Work for this Favorable Not Applicable Unfavorable

Solution

1 Direct labor efficiency variance = (9.34-0.58)*710= $6219.6 or $6220 Unfavorable 2 Variable overhead spending variance=80732-(21738*4)= $6220 Favorable Variable overhead efficiency variance= 4*(21738-11760*1.76)= $4161.6 or $4162 Unfavorable