MiniExercise Algo Direct labor variances LO
Acme Company's production budget for August is units and includes the following component unit costs: direct materials,
$; direct labor, $; variable overhead, $ Budgeted fixed overhead is $ Actual production in August was
units. Actual unit component costs incurred during August include direct materials, $; direct labor, $; variable overhead,
$ Actual fixed overhead was $ The standard direct labor cost per unit consists of hour of labor time at $ per hour.
During August, $ of actual labor cost was incurred for direct labor hours.
Required:
Calculate the labor rate variance and labor efficiency variance for August.
Note: Indicate the effect of each variance by selecting T for favorable, U for unfavorable, and "None" for no effect ie zero
variance
