Items 1 and 2 are based on the following information:
The standard direct labor cost to produce one pound of output for a company is presented below. Related data regarding the planned and actual production activities for the current month for the company are also given below.
NOTE: DLH = Direct Labor Hours.
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Direct Labor Standard: |
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.4 DLH @ $12.00 per DLH = $4.80 |
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Planned production |
15,000 pounds |
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Actual production |
15,500 pounds |
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Actual direct labor costs (6,250 DLH) |
$75,250 |
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The company’s direct labor rate variance for the current month would be
- $10 unfavorable.
- $240 unfavorable.
- $248 unfavorable.
- $250 unfavorable.
The company’s direct labor efficiency variance for the current month would be
- $600 unfavorable.
- $602 unfavorable.
- $2,400 unfavorable.
- $3,000 unfavorable.