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Question - JaneFon Industries, Inc. (JFI), uses standard costs for direct material and direct labor for planning and control purposes. Data below pertains to one of their major products, the 10-gallon plastic container.
During June 2019, JFI produced and sold 24,000 containers using 2,700 hours of direct labor at an actual labor rate of $18. The DL price variance for June 2019 was $5,400 (F). The DL efficiency variance for June 2019 was $6,000 (U).
Calculate the standard wage rate per DL-hour and the standard quantity of direct labor allowed per container that were used in variance analysis.
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