Actual weekly payroll costs for direct labor for installations of Easy Applications were $10,500 for 500 hours.

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Actual weekly payroll costs for direct labor for installations of Easy Applications were $10,500 for 500 hours. The standard was 2 hours per installation. The direct labor standard cost was $18 per hour. Actual installations were 235 units.

a. What was the direct labor rate (price) variance?

b. What was the direct labor efficiency (quantity) variance?

c. What is the total direct labor variance?

d. What could be some reasons for the direct labor efficiency (quantity) variance?

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Managerial Accounting

ISBN: 9780137689453

1st Edition

Authors: Jennifer Cainas, Celina J. Jozsi, Kelly Richmond Pope

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