Solved: Standard labor-hours allowed for actual output flexible, Accounting Basics

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Standard labor-hours allowed for actual output flexible

Problem -

Actual total direct labor 546,000

Actual hours worked 26,000

Standard labor-hours allowed for actual output (flexible budget) 27,000

Direct labor price variance 19,500 u

Actual variable overhead 132,600

Standard variable overhead rate per standard direct labor-hour 5.25

Variable overhead is applied based on standard direct labor-hours allowed.

Required - Compute the labor and variable overhead price and efficiency variance?

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Accounting Basics: Standard labor-hours allowed for actual output flexible

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