Homework SourseThe perunit standards for direct labor are 2 direct labor ho
The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 2800 units, the actual direct labor cost was $83200 for 5200 direct labor hours worked, the total direct labor variance is
| $800 favorable. |
Solution
$800 favorable.
Working:
| Total Direct Labor Variance | = | Standrad Direct Labor cost - Actual Direct Labor cost | |||||||||||
| = | $ 84,000 | - | $ 83,200 | ||||||||||
| = | $ 800 | favorable | |||||||||||
| Working: | |||||||||||||
| Standard Direct Labor cost | = | Actual Units produced x per unit standard labor hours x labor cost per standard hour | |||||||||||
| = | 2800 | x | 2 | x | $ 15 | ||||||||
| = | $ 84,000 | ||||||||||||
