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Direct Labor Variances Bellingham Company produces a product that requires 4 standard direct labor hours per unit at a standard hourly rate of $20 per hour. If 15,000 units used 61,800 hours at an hourly rate of $19.85 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance

Respuesta :

The Correct Figures are as Follows :-

(A) The direct labor rate variance is - 9270 ( Favorable ).

(B) The direct labor time variance is 36,000 ( Unfavorable ).

(C)  The direct labor cost variance is 26,730 ( unfavorable ).

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance = (Standard Rate - Actual Rate) ×Actual Quantity

Now we know,

SR = Standard Rate

AR = Actual Rate

Therefore,

a) Direct labor rate variance= $133,085

Labor Rate variance = (SR-AR) × AH

= (20-19.85) × 61,800

= - 9270 Favorable

b) Labor time variance = (SH-AH) × SR

= (15000 × 4 - 61800) × 20

= 36,000 Unfavorable

c) Labor cost variance

= 9270F + 36000 U

= 26,730 Unfavorable

To learn more about direct labor variances, check the links.

https://brainly.com/question/15732972

https://brainly.com/question/24260818

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