Chi Hou's Noodles makes noodles by hand and supplies local Chinese restaurants. The company has the...

 

Transcribed Image Text:

Chi Hou's Noodles makes noodles by hand and supplies local Chinese restaurants. The company has the following standards for direct labour: Staff should be able to make 10 kilograms per hour and the labour wage rate is $9 per hour. For September, the company produced 15,000 kilograms of noodles. The direct labour workforce worked for 1,400 hours and the labour cost for the month was $13,600. Required: Compute the company's direct labour rate and efficiency variances. Chi Hou's Noodles makes noodles by hand and supplies local Chinese restaurants. The company has the following standards for direct labour: Staff should be able to make 10 kilograms per hour and the labour wage rate is $9 per hour. For September, the company produced 15,000 kilograms of noodles. The direct labour workforce worked for 1,400 hours and the labour cost for the month was $13,600. Required: Compute the company's direct labour rate and efficiency variances.