Castle inc has set labor costs at 48 per unit of output, Financial Accounting

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Castle inc has set labor costs at 48 per unit of output

Castle Inc. has set labor costs at $48 per unit of output, based on 3 hours allowed to produce each finished unit. Last month, 3,000 direct labor hours were used, and 1,500 units of output were manufactured at a total labor cost of $72,000. Required:

If the company used fewer direct labor hours than those reflected in the standards, which variance would be affected? Explain.

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Financial Accounting: Castle inc has set labor costs at 48 per unit of output

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Financial Accounting: Castle inc has set labor costs at 48 per unit of output

Reference No:- TGS01594972

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