Shailene company has set labor costs at 48 per unit of


Question - Shailene Company has set labor costs at $48 per unit of output, based on 3 hours allowed to produce each finished unit. Last month, 3,000 direct labor hours were used, and 1,500 units of output were manufactured at a total cost of $72,000.

Required:

a. Determine the labor rate variance.

b. Determine the labor efficiency variance.

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Accounting Basics: Shailene company has set labor costs at 48 per unit of
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