Rogers, CPAs, set the following standard for its inventory audit of La Bamba Co.: 350 hours at an average hourly billing rate of $195. The firm actually worked 330 hours during the inventory audit process. The total labor variance for the audit was $2,500 unfavorable.
a) Compute the total actual payroll. Recrod the entry to accrue payroll costs
b) Compute the labor efficiency
c) Compute the labor variance
2Bonnie's Company has the following information available for the current year when 25,500 units were produced:
Material 95,625 feet used (100,000 feet purchased @ $2.50 per foot)
Labor 122,400 direct labor hours incurred @ $8.35 per hour
1. Compute the usage material price and quantity variances as well as the total materials variance. Indicate for each whether F or U.
2. Compute the labor rate and efficiency variances as well as the total labor variances.Indicate for each whether F or U.