Solution-Determine total direct labor cost variance for

Determine total direct labor cost variance for department

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Reference no: EM132766338

Problem - Direct labor variances - Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct labor hours at an actual rate of $16.50 per hour. The Sewing Department used 19,600 direct labor hours at an actual rate of $19.25 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 $18.00. The standard labor time for the Cutting and Sewing departments is 0.3 hour and 0.5 hour per unit, respectively.

Required -

a1. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department.

a2. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (2) Sewing Department.

b. Interpret your results.

Reference no: EM132766338

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Determine total direct labor cost variance for department

Reference no: EM132766338

Reference no: EM132766338

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