The records of Norton, Inc. show the following for July: Standard labor-hours allowed per unit of output.

Question:

The records of Norton, Inc. show the following for July:

Standard labor-hours allowed per unit of output. . . . . . . . 1.2

Standard variable overhead rate per

standard direct labor-hour. . . . . . . . . . . . . . . . . . . . . . . $45

Good units produced. . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000

Actual direct labor-hours worked. . . . . . . . . . . . . . . . . . . 73,600

Actual total direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . $2,370,000

Direct labor efficiency variance . . . . . . . . . . . . . . . . . . . . $48,000 U

Actual variable overhead. . . . . . . . . . . . . . . . . . . . . . . . . $3,072,000

Required

Compute the direct labor and variable overhead price and efficiency variances.

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Related Book For  book-img-for-question

Fundamentals of Cost Accounting

ISBN: 978-1259565403

5th edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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