Standard and Actual Costs for Direct Labor for the Manufacture

question 125

Essay

Standard and actual costs for direct labor for the manufacture of 300 units of product were as follows:
Actual costs
125 hours at $54
Standard costs
131 hours at $53
Determine the direct labor (a) time variance, (b) rate variance, and (c) total cost variance.

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Definitions:

Disaster Risk

The potential loss or damage that could occur to a system, society, or community in a specific period due to disasters.

Suppliers

Businesses or individuals that provide goods or services to another entity under terms specified in a contract or agreement.

Great East Japan Earthquake

A magnitude 9.0 undersea earthquake off the Pacific coast of Japan, occurred on March 11, 2011, causing widespread damage and triggering a tsunami.