Nantucket, Inc

question 137

Essay

Nantucket, Inc.uses a standard cost system with the following labor standards for one unit of product: standard hours, 12 minutes, and standard wage rate, $10.During December, Nantucket incurred 3,500 hours of direct labor and paid $34,000 in wages in production of 18,000 units.
Required:
Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable.

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about the population.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

POM for Windows

POM for Windows is a software application designed to facilitate decision making in production and operations management by providing various analytical models.