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Question - Feel the Summer' Actual hours worked 9,200 manufactures sweaters. Below is information related to labour, production, costs, and time for the month of April.
Actual production of sweaters 2,275
Actual direct labour rate $08.25
Standard direct labour rate (4 hours per sweater) $08.00
Required - Calculate the following indicators.
a. Calculate the total direct labour.
b. Calculate the payroll, labour rate variance.
c. Calculate the labour efficiency variance.
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From this information, what predetermined overhead rate, as a percentage of direct labour costs, does the company appear to be using?
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