Worm Corporation’s direct labor costs for the month of March is as follows: Standard direct labor hours 42,000 Actual direct labor hours 40,000 Direct labor rate variance, favorable P8,400 Standard direct labor rat per hour P6.50 What was Worm’s direct labor payroll for the month of March? Select one: P260,000 P251,600 P244,000 P243,000
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.
Worm Corporation’s direct labor costs for the month of March is as follows:
Standard direct labor hours 42,000
Actual direct labor hours 40,000
Direct labor rate variance, favorable P8,400
Standard direct labor rat per hour P6.50
What was Worm’s direct labor payroll for the month of March?
Select one:
- P260,000
- P251,600
- P244,000
- P243,000
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