Direct labor variances
A manufactured product has the following information for June.
| |
Standard |
Actual |
| Direct materials |
(7 lbs. @ $8 per lb.) |
|
58,700 |
lbs. @ $8.10 per lb. |
| Direct labor |
(3 hrs. @ $16 per hr.) |
|
24,600 |
hrs. @ $16.40 per hr. |
| Overhead |
(3 hrs. @ $13 per hr.) |
$ |
329,300 |
|
| Units manufactured |
|
|
8,300 |
|
Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.