Custom Clubs produces handmade golf clubs. The process is labor intensive. The speed at which a club can be built depends on the skill level of the individual worker. Management has established a standard of 2 labor hours per club. The standard wage rate is $12 per hour. During a recent month, 2,500 custom clubs were produced. Management was pleased that only 4,900 labor hours were worked; however, total wages amounted to $63,700.

Compute the total variance for labor, and determine how much is related to rate and efficiency components.

Labor variances:
Actual Labor Cost
Actual hours of labor	-
Actual rate	$ -
Actual cost of direct labor	$ -
Standard Labor Cost
Output - number of clubs	-
Standard hours per club	$ -
Standard hours to achieve output	-
Standard rate per hour	$ -
Standard cost of direct labor	$ -
Total labor variance (standard cost v. actual cost)	$ -
Labor rate variance:
Standard rate	$ -
Actual rate	-
	$ -
Actual hours	-
Unfavorable labor rate variance	$ -
Labor efficiency variance:
Standard hours	-
Actual hours	-
	-
Standard rate	$ -
Favorable labor efficiency variance	$ -

Answer rating: 100% (QA)

Compute the labour variance as follows Labour variance Actual labour cost Actual hour... View the full answer