The following direct labor standards have been established for product k$33$L:

Standard direct labor$-$hours $7\mathrm{.}2$ hours per unit of k$33$L

Standard direct labor wage rate $ $12\mathrm{.}80$ per hour

The following data pertain to last month's operations:

Actual output of product k$33$L $900$ units

Actual direct labor$-$hours worked $6,600$ hours

Actual direct labor wages paid $ $78,540$

  

 

Required:

a$.$ What was the labor rate variance for the month?

b$.$ What was the labor efficiency variance for the month?

Indicate each variance as $"$F$"$ for favorable and $"$U$"$ for unfavorable.

Answer rating: 100% (QA)

To calculate the labor rate variance for the month we first need to determine the actual labor rate ... View the full answer