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.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive.

Tax Revenues

Income that the government receives from taxation, which can be levied on individuals, corporations, and other legal entities.

Federal Gasoline Taxes

Taxes imposed by the federal government on the sale of gasoline.

Payroll Taxes

Government levies on employee earnings to support social insurance programs, characteristically deducted from a worker's paycheck.