Reference no: EM13121889
A company has a standard of 2 hours of direct labor per unit produced and $18 per hour for the labor rate. During last period, the company used 9,500 hours of direct labor at a $152,000 total cost to produce 4,000 units. Compute the direct labor rate and efficiency variances.
A) Rate Variance: $19,000 unfavorable; Efficiency Variance: $27,000 favorable.
B) Rate Variance: $63,829 unfavorable; Efficiency Variance: $99,000 unfavorable.
C) Rate Variance: $152,000 favorable; Efficiency Variance: $99,000 unfavorable.
D) Rate Variance: $19,000 favorable; Efficiency Variance: $27,000 unfavorable.
E) Rate Variance: $152,000 unfavorable; Efficiency Variance: $99,000 favorable.
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