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Computing Labor Rate and Efficiency Variances
The following labor standards have been established for a particular product:Standard labor hours per unit of output......0.3 hoursStandard labor rate..................................$15.50 per hour
The following data pertain to operations concerning the product for the last month:Actual hours worked.........3800Actual total labor cost.....$59,470Actual output.......... 12,800 units
Required: a. What is the labor rate variance for the month? b. What is the labor efficiency variance for the month
Determine labor rate and efficiency variances and the controllable overhead variance and the overhead volume variance.
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