Ask Question
8 October, 15:37

Marv Company's direct labor costs for manufacturing its only product were as follows for October: Standard direct labor hours (DLHs) per unit of product 2 Budgeted finished units for the period 7,100 Actual number of finished units produced 5,700 Standard wage rate per direct labor hour (SP) $ 20.00 Direct labor costs incurred $ 234,000 Actual wage rate per direct labor hour (AP) $ 18.00 The direct labor efficiency variance for October, rounded to the nearest dollar, was:

a. $32,000 unfavorable.

b. $20,600 favorable.

c. $26,000 favorable.

d. $3,200 unfavorable.

e. $52,600 unfavorable.

+3
Answers (1)
  1. 8 October, 15:44
    0
    a. $32,000 unfavorable

    Explanation:

    The computation of the direct labor efficiency variance for October is shown below:-

    Direct labor efficiency variance = (Standard hours for actual production - Actual hrs) * Standard rate per hour

    = (5,700 * 2 - $234,000 : $18.00) * $20

    = (11,400 - $13,000) * $20

    = $1,600 * $20

    = $32,000 unfavorable

    Therefore for computing the direct labor efficiency variance for October we simply applied the above formula.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Marv Company's direct labor costs for manufacturing its only product were as follows for October: Standard direct labor hours (DLHs) per ...” 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