The Standards for Product F88W Specify 3

question 11

Essay

The standards for product F88W specify 3.4 direct labor-hours per unit at $13.00 per direct labor-hour. Last month 800 units of product F88W were produced using 2,500 direct labor-hours at a total direct labor wage cost of $30,500.
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:

Inflation

The rate of growth in the general price level of goods and services, which decreases the power of purchase.

Reagan Administration

The presidency of Ronald Reagan, the 40th President of the United States, from 1981 to 1989, known for its conservative policies, economic reforms, and role in ending the Cold War.

Clinton Administration

The executive branch of the U.S. government from 1993 to 2001, under President Bill Clinton.

Real Federal Spending

Government expenditures adjusted for inflation, reflecting the actual purchasing power of spending.