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The production manager budgets four direct labor hours per

Question - Bonita Family Instruments makes cellos. During the past year, the company made 6,700 cellos even though the budget planned for only 5,720. The Company paid its workers an average of $15 per hour, which was $1 higher than the standard labor rate. The production manager budgets four direct labor hours per cello. During the year a total of 24,850 direct labor hours were worked.

Calculate the direct labor rate and efficiency variances.

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Accounting Basics: The production manager budgets four direct labor hours per

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