Direct labor variances-determine the labor rate variance

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Reference no: EM13789546

Direct Labor Variances

Assume that Nortel manufactures specialty electronic circuitry through a unique photoelectronic process. One of the primary products, Model ZX40, has a standard labor time of 0.5 hour and a standard labor rate of $12.50 per hour. During February, the following activities pertaining to direct labor for ZX40 were recorded:

Direct labor hours used 2,230

Direct labor cost $34,000

Units of ZX40 manufactured 4,800

(a) Determine the labor rate variance.

(b) Determine the labor efficiency variance.

Reference no: EM13789546

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