A company uses the following standard costs to produce a single unit of output. 6 pounds...

Transcribed Image Text:

A company uses the following standard costs to produce a single unit of output. 6 pounds at $0.90 per pound 0.5 hour at $12.00 per hour Manufacturing overhead 0.5 hour at $4.80 per hour Direct materials Direct labor $ 5.40 $ 6.00 $ 2.40 During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the total direct labor variance for the month was: A company uses the following standard costs to produce a single unit of output. 6 pounds at $0.90 per pound 0.5 hour at $12.00 per hour Manufacturing overhead 0.5 hour at $4.80 per hour Direct materials Direct labor $ 5.40 $ 6.00 $ 2.40 During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the total direct labor variance for the month was:

Answer rating: 100% (QA)

To calculate the total direct labor variance we need to compute the difference between the actual di... View the full answer