Ask Question
21 October, 06:32

Pochard Paints manufactures artist's oil paints. Each 40 ml tube of paint requires 5 minutes of direct labor, and the standard labor rate is $9 per direct labor hour. In September, Pochard incurred 10,800 direct labor hours at a cost of $95,000 to produce 120,000 tubes of paint. Calculate Pochard's direct labor rate variance for September.

+4
Answers (1)
  1. 21 October, 06:53
    0
    Direct labor rate variance = $2,160 favorable

    Explanation:

    Giving the following information:

    Each 40 ml tube of paint requires 5 minutes of direct labor, and the standard labor rate is $9 per direct labor hour. In September, Pochard incurred 10,800 direct labor hours for $95,000 to produce 120,000 tubes of paint.

    To calculate the Direct Labor rate variance we need to use the following formula:

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

    SR = 9

    AR = ($95,000/10,800) = $8.80

    AQ = 10,800

    Direct labor rate variance = (9 - 8.8) * 10,800 = 2,160 favorable
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Pochard Paints manufactures artist's oil paints. Each 40 ml tube of paint requires 5 minutes of direct labor, and the standard labor rate ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers