Compute what direct labor rate variance and time variance

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Problem 1: If sales are $791,000, variable costs are 66% of sales, and operating income is $212,000, what is the contribution margin ratio?

a.34%
b.62%
c.66%
d.38%

Problem 2: Japan Company produces lamps that require 3 standard hours per unit at a standard hourly rate of $17.40 per hour. Production of 7,700 units required 22,640 hours at an hourly rate of $17.90 per hour. What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? Enter favorable variances as negative numbers.

a. Direct labor rate variance $ Favorable/unfavorable

b. Direct labor time variance $ Favorable/unfavorable

c. Total direct labor cost variance $ Favorable/unfavorable

Reference no: EM132742763

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