Refer to the information in question. In Question, Wheeler Corporation produces and sells special eyeglass straps for
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In Question, Wheeler Corporation produces and sells special eyeglass straps for sporting enthusiasts. In 2009, the company budgeted for production and sales of 1,200 straps. However, the company produced and sold just 1,100 straps. Each strap has a standard requiring 1 foot of material at a budgeted cost of $1.50 per foot and 2 hours of assembly time at a cost of $12 per hour. Actual costs for the production of 1,100 items were $1,435.50 for materials (990 feet at $1.45 per foot) and $29,161 for labor (2,420 hours at $12.05 per hour).
Required
A. Calculate the direct labor rate variance.
B. Calculate the direct labor efficiency variance.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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