Standard and Actual Costs for Direct Labor for the Manufacture

question 118

Short Answer

Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows:
Actual costs: 950 hours at $37
Standard costs: 975 hours at $36
Determine the direct labor:
(a) time variance
(b) rate variance
(c) total direct labor cost variance.

---

Definitions:

Fixed Overhead

Fixed overhead costs are business expenses that remain constant regardless of the level of production or business activity. These can include rent, salaries, and insurance.