Determine the direct labor rate and time variance

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Reference no: EM13123013

The Freedom CLothes Company produced 18,000 units during June of the current year. The Cutting Department used 3,500 direct labor hours at actual rate of 12.10 per hour. THe Sewing Department used 5,800 direct labor hours at an actual rate of 11.80 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is 12.00. The standard labor time for the Cutting and Sewing departments is 0.20 hour and 0.30 hour per unit, respectively.

a. Determine the direct labor rate and time variance for the (1) Cutting Department and (2) Sewing Department.

Reference no: EM13123013

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