Calculate the labor rate variance and labor efficiency


Direct labor variances In addition to the information for Acme Company in Mini Exercises 15.1 and 15.2, the standard direct labor cost per unit consists of 0.5 hour of labor time at $20 per hour. During August, $170,100 of actual labor cost was incurred for 8,100 direct labor hours.In Mini Exercise 15.1, Acme Company's production budget for August is 17,500 units and includes the following component unit costs: direct materials, $8; direct labor, $10; variable overhead, $6. Budgeted fixed overhead is $32,000. Actual production in August was 18,000 units.In Mini Exercise 15.2, In addition to the information for Acme Company in Mini-Exercise 15.1, actual unit component costs incurred during August include direct materials, $8.25; direct labor, $9.45; variable overhead, $6.82. Actual fixed overhead was $33,500.

Required:

Calculate the labor rate variance and labor efficiency variance for August.

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Cost Accounting: Calculate the labor rate variance and labor efficiency
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