Explain how one would get labor usage variance


Problem: Co provides the following standard cost data:

Direct material (3 gallons at $5 per gallon) $15.00
Direct Labor (2 hours at $12 per hour) $24.00
During the period, the company produced and sold 26,000 units, incurring the following costs:
Direct material (75,000 gallons at $4.90 per gallon
Direct Labor (47,500 hours at $12.05 per hour

The materials usage variance was:

a) $15,000 favorable b) $15,000 unfavorable c) $14,700 favorable d) $14,700 unfavorable

Please also explain how one would get labor usage variance.

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Accounting Basics: Explain how one would get labor usage variance
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