Levram Company uses a standard costing system. During the past quarter, the following variances were computed: Variable

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Levram Company uses a standard costing system. During the past quarter, the following variances were computed:
Variable overhead efficiency variance ....... $ 30,000 U
Direct labor efficiency variance ........ 40,000 U
Direct labor rate variance ............ 25,000 U
Levram applies variable overhead using a standard rate of $4 per direct labor hour allowed. Two direct labor hours are allowed per unit produced. (Only one type of product is manufactured.) During the quarter, Levram used 15 percent more direct labor hours than should have been used.

Required:
1. What were the actual direct labor hours worked? The total hours allowed?
2. What is the standard hourly rate for direct labor? The actual hourly rate?
3. How many actual units were produced?

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Related Book For  book-img-for-question

Cost Management Accounting and Control

ISBN: 978-0324559675

6th Edition

Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan

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