Standard and Actual Costs for Direct Labor for the Manufacture $\begin{array}{ll}\text { Actual costs } & 450 \text { hours } @ \$ 17.00 \\\text { Standard costs } & 455 \text { hours } @ \$ 16.50\end{array}$

question 174

Essay

Standard and actual costs for direct labor for the manufacture of 1,500 units of product were as follows: $\begin{array}{ll}\text { Actual costs } & 450 \text { hours } @ \$ 17.00 \\\text { Standard costs } & 455 \text { hours } @ \$ 16.50\end{array}$ ?
Determine the (a) time variance, (b) rate variance, and (c) total direct labor cost variance.

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Definitions:

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit from the investment divided by its cost.

Residual Income

The amount of income that an individual has after all personal debts and expenses have been paid.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit of the investment by its cost.

Residual Income

The net income that exceeds the minimum required return on a company's investments or operations.