Bellingham Company produces a product that requires 8 standard direct labor hours per unit at a standard hourly rate of $13.00 per hour. If 6,000 units used 49,900 hours at an hourly rate of $12.48 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance $ b. Direct labor time variance $ c. Direct labor cost variance $
Bellingham Company produces a product that requires 8 standard direct labor hours per unit at a standard hourly rate of $13.00 per hour. If 6,000 units used 49,900 hours at an hourly rate of $12.48 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance $ b. Direct labor time variance $ c. Direct labor cost variance $
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 2BE: Direct labor variances Bellingham Company produces a product that requires 4 standard direct labor...
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Bellingham Company produces a product that requires 8 standard direct labor hours per unit at a standard hourly rate of $13.00 per hour. If 6,000 units used 49,900 hours at an hourly rate of $12.48 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| a. Direct labor rate variance | $ | |
| b. Direct labor time variance | $ | |
| c. Direct labor cost variance | $ |
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