Total variance for production labor

Reference no: EM1341048

Total Labor Variance, Labor Rate, and Efficiency

Botella, Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hours. During the month of April, 500,000 bottles were produced using 14,000 labor hours @ $9.00. The standard wage rate is $8.50 per hour.

Determine the total variance for production labor for the month of April and determine the labor rate and efficiency variances using the columnar and formula approaches.

Reference no: EM1341048

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