For the stamping department of a manufacturing firm, the standard cost for direct labor is $15 per

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For the stamping department of a manufacturing firm, the standard cost for direct labor is $15 per hour, and the production standard calls for 1,000 stampings per hour. During February, 198 hours were required for actual production of 186,000 stampings. Actual direct labor cost for the stamping department for June was $3,168.

Required:

a. Complete the following performance report for February:

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b. Analyze the budget variance by calculating the direct labor efficiency and rate variances for February.

c. What alternatives to the preceding monthly report could improve control over the stamping department?s direct labor?

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Related Book For  book-img-for-question

Accounting What the Numbers Mean

ISBN: 978-1260565492

12th edition

Authors: David Marshall, Wayne McManus, Daniel Viele

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