The Standards for Product C54L Specify 4

question 102

Essay

The standards for product C54L specify 4.5 direct labor-hours per unit at $12.40 per direct labor-hour.Last month 1,560 units of product C54L were produced using 7,000 direct labor-hours at a total direct labor wage cost of $86,100.
Required:
a.What was the labor rate variance for the month?
b.What was the labor efficiency variance for the month?

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Definitions:

Socialist Societies

Societies that adopt a socialist system, emphasizing public or collective ownership and the distribution of resources and wealth for achieving equality and social justice.

Economic Determinism

The theory that economic forces and structures are the primary determinants of almost every aspect of society, including political and social conditions.

Scientific Method

A systematic approach to research in which questions are answered through experiments and observations, leading to empirical evidence.

Society

A collection of people engaged in continuous social interactions, or a significant social group inhabiting the same geographical or social region, generally governed by the same political authority and prevailing cultural norms.