Question

Refer to the information in question.
In Question, Wheeler Corporation produces and sells special eyeglass straps for sporting enthusiasts. In 2009, the company budgeted for production and sales of 1,200 straps. However, the company produced and sold just 1,100 straps. Each strap has a standard requiring 1 foot of material at a budgeted cost of $1.50 per foot and 2 hours of assembly time at a cost of $12 per hour. Actual costs for the production of 1,100 items were $1,435.50 for materials (990 feet at $1.45 per foot) and $29,161 for labor (2,420 hours at $12.05 per hour).

Required
A. Calculate the direct labor rate variance.
B. Calculate the direct labor efficiency variance.



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  • CreatedMarch 11, 2015
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