Crandell Co. forecasts monthly production of 20,000 units at a cost of $20 each. The cost breakdown
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Crandell Co. forecasts monthly production of 20,000 units at a cost of $20 each. The cost breakdown is as follows: Labor...............2 hours per unit at $4 per hour
Material............3 pounds per unit at $2 per pound
Fixed overhead......$2 per direct labor hour
Variable overhead...$1 per direct labor hour
In September, Crandell produced 18,000 units at a cost of $397,500. If payroll for September amounted to $150,000 at an hourly rate of $5, compute the labor budget variance.
A. $6,000 favorable
B. $6,000 unfavorable
C. $30,000 favorable
D. $24,000 unfavorable
E. none of the above
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd Canadian edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang-Hsuan Chen, Gail Cook
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