Information about the use of direct labor at EZ Toys’ Trucks Division for October follows:
|
Standard costs |
|
|
0.4 hour per truck @ $10 per hour |
= $4 per truck |
|
Trucks produced in October |
= 10,000 |
|
Actual direct labor costs |
|
|
Actual hours worked |
= 5,000 |
|
Total actual labor cost |
= $51,000 |
|
Average cost per hour |
= $10.2 |
Required:
Prepare Truck Division’s direct labor variances for October.