The Beakins Company manufactures advertising banners made of weather-resistant nylon. The direct labor standard for a banner
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Question:
The Beakins Company manufactures advertising banners made of weather-resistant nylon. The direct labor standard for a banner allows 1.5 direct labor hours at a standard rate of $10 per direct labor hour. During the month of March, Beakins used 2,190 direct labor hours to produce 1,210 banners. The company's direct labor payroll totaled $17,820 for the month.
(a) Based on the direct labor standard, how many direct labor hours should Beakins have used in March?
Labor Hours 1845 DLH
(b) Calculate the direct labor rate variance for March.
Direct labor rate variance 2254 Favorable
(c) Calculate the direct labor efficiency variance for March.
Direct labor efficiency variance $9.47 Unfavorables
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