Question

Hoist Inc. manufactures garage doors for homes. The standard quantity of direct labor to manufacture a door is 4.5 hours. The standard hourly wage in this department is $12.50 per hour. During August, 6,100 doors were produced. The payroll records indicate that 31,110 hours were worked at a total cost for payroll of $411,274.20.
Calculate the following, using the "goalpost" diagram format shown in Figure 8-4 to compute variances:
In Figure 8-4


1. Labor rate variance.
2. Labor efficiency variance.
3. Net laborvariance.


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  • CreatedMay 05, 2014
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