Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per unit at a cost of $11.00 per direct labour-hour. During June, 1,000 units were produced using 6,800 hours at $12.50 per hour. What was the direct labour efficiency variance? a. $35,000 unfavourable b. $30,800 unfavourable C. $35,000 favourable d. $30,800 favourable
Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per unit at a cost of $11.00 per direct labour-hour. During June, 1,000 units were produced using 6,800 hours at $12.50 per hour. What was the direct labour efficiency variance? a. $35,000 unfavourable b. $30,800 unfavourable C. $35,000 favourable d. $30,800 favourable
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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