Question: Labor Variance with Idle Time Standard cost = 2 . 5 hours @ $ 1 8 / hr = $ 4 5 / unit Actual:

Labor Variance with Idle Time Standard cost =2.5 hours @ $18/hr = $45/unit Actual: 1,250 hours for 500 units; $24,375 total labor cost; 80 hours idle time a. Compute labor rate, efficiency, and idle time variances b. Discuss implications of idle time on efficiency variance

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