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Question - Information regarding Maxwell's direct labor cost for the month of January follows:
Direct labor hourly rate paid $28.50
Total standard direct labor hours for units produced this period 11,000
Direct labor hours actually worked 10,800
Direct labor rate variance $ 16,000 favorable
Required -
1. Compute the standard direct labor wage rate per hour in January.
2. Compute the direct labor efficiency variance for January. Was this variance favorable or unfavorable?
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