# Question: Direct labor variances In addition to the information for Acme

Direct labor variances In addition to the information for Acme Company in Mini-Exercises 15.1 and 15.2, the standard direct labor cost per unit consists of 0.5 hour of labor time at \$20 per hour. During August, \$170,100 of actual labor cost was incurred for 8,100 direct labor hours.
In Mini-Exercise 15.1, Acme Company's production budget for August is 17,500 units and includes the following component unit costs: direct materials, \$8; direct labor, \$10; variable overhead, \$6. Budgeted fixed overhead is \$32,000. Actual production in August was 18,000 units.
In Mini-Exercise 15.2, In addition to the information for Acme Company in Mini-Exercise 15.1, actual unit component costs incurred during August include direct materials, \$8.25; direct labor, \$9.45; variable overhead, \$6.82. Actual fixed overhead was \$33,500.

Required:
Calculate the labor rate variance and labor efficiency variance for August.

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