Question: Question : Four seasons' industries has established direct labor performance and repair shop. However, some labor records were destroyed during a recent fire. The actual
Question: Four seasons' industries has established direct labor performance and repair shop. However, some labor records were destroyed during a recent fire. The actual hours worked during August were 2,750, and the total direct labor budget variance was $ 1,430 unfavorable. The standard labor rate was $ 17.60 per hour, but recent resignations allowed the firm to hire lower-paid replacement workers for some jobs and this produced a favorable rate variance of $ 3,850 for August.
a)Calculate the actual direct labor rate paid per hour during August. Round your answer to 1 decimal place.
b)Calculate the dollar amount of the direct labor efficiency variance for August.
c)Calculate the standard direct labor hours allowed for the actual level of activity during August. Hint: use formula for the quantity variance and solve for the missing information.
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