QS 23-11 Direct labor variances LO P2 The following information describes a companys direct labor...
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Accounting
QS 23-11 Direct labor variances LO P2
The following information describes a companys direct labor usage in a recent period.
| Actual direct labor hours used (AH) | 71,000 | |
| Actual direct labor rate per hour (AR) | $ | 15 |
| Standard direct labor rate per hour (SR) | $ | 14 |
| Standard direct labor hours for units produced (SH) | 72,100 | |
AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Compute the direct labor rate and efficiency variances for the period and classify each as favorable or unfavorable.
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