Reference no: EM132711752

The following labor standards have been established for a particular product:

Standard labor hours per unit of output 8.3 hours

Standard labor rate $ 12.10 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 6 100 hours

Actual total labor cost $71,370

Actual output 900 units

Problem a. What were labor variances for the month? Clearly indicate Favourable and Unfavourable.

Problem b. Overhead is applied on the basis of direct labor hours:

Standard labor hours per unit of output 8.3 hours

Standard variable overhead costs per hour $ 2.10 per hour

Required. Determine the overhead variances.

Problem c. prepare the journal entries to record the labour costs for the period