Question

LIFT 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:
1. Labor rate variance
2. Labor efficiency variance
3. Net labor variance


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  • CreatedMarch 31, 2015
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