During 2024 you incurred 1,700 direct labor hours (DLH) at a cost of $27,200 while...

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Accounting

During 2024 you incurred 1,700 direct labor hours (DLH) at a cost of $27,200 while manufacturing the 110 FNs. The standard DLH quantity is 15DLH per FN. The standard rate per DLH is $15.
Calculate the efficiency and rate variances for Direct Labor used in 2024.
How much will COGS change, and in what direction, when these variances are closed out?
Standard DLH =15 per FN
Actual DLH=
DL Rate
DL Efficiturey
Standerd
Actu
15DLHper
110 FN
=1650
$15-$16=$1(1700DLH)
1650-1700=-50 ince cred
=
$1700
DL Rate VAR Unfuucrable
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