The Standards for Product V33I Specify 8

question 34

Essay

The standards for product V33I specify 8.0 direct labor-hours per unit at $11.20 per direct labor-hour. Last month 760 units of product V33I were produced using 6,500 direct labor-hours at a total direct labor wage cost of $75,075.
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?
c. Prepare a journal entry to record direct labor costs during the month, including the direct labor variances.

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Definitions:

Hospital Setting

The environment or context of a medical facility where health care services are provided to patients.

Medical Technologist

A healthcare professional responsible for performing laboratory testing critical to the detection, diagnosis, and treatment of disease.

Respiratory Therapist

A healthcare professional specializing in the treatment and care of patients with breathing or other cardiopulmonary disorders.