Direct Labor Variances Assume that Nortel manufactures specialty electronic circuitry through a unique photoelectronic process. One...

 

Transcribed Image Text:

Direct Labor Variances Assume that Nortel manufactures specialty electronic circuitry through a unique photoelectronic process. One of the primary products, Model ZX40, has a standard labor time of 0.5 hour and a standard labor rate of $12.50 per hour. During February, the following activities pertaining to direct labor for ZX40 were recorded: Direct labor hours used Direct labor cost 2,230 $34,000 Units of ZX40 manufactured 4,800 (a) Determine the labor rate variance. U (b) Determine the labor efficiency variance. F (c) Determine the total flexible budget labor cost variance. x FX Direct Labor Variances Assume that Nortel manufactures specialty electronic circuitry through a unique photoelectronic process. One of the primary products, Model ZX40, has a standard labor time of 0.5 hour and a standard labor rate of $12.50 per hour. During February, the following activities pertaining to direct labor for ZX40 were recorded: Direct labor hours used Direct labor cost 2,230 $34,000 Units of ZX40 manufactured 4,800 (a) Determine the labor rate variance. U (b) Determine the labor efficiency variance. F (c) Determine the total flexible budget labor cost variance. x FX