Question 1 - The Reedy Company uses a standard costing system. The following data are available for November:
Actual direct labor-hours worked 5800 hours
Standard direct labor rate $9 per hour
Labor rate variance 1160 favorable
The actual direct labor rate for November is:
a $9.20
b $9.00
c $8.80
d $8.90
Question 2 - The following labor standards have been established for a particular product:
Standard labor hours per unit of output 1.5 hours
Standard labor rate $17.55 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked 5300 hours
Actual total labor cost $ 94340
Actual output 3600 units
What is the labor rate variance for the month?
a $1,780 F
b $1,325 U
c $430 U
d $430 F
Question 3 - The following labor standards have been established for a particular product:
Standard labor hours per unit of output 4.0 hours
Standard labor rate $12.3 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked 7100 hours
Actual total labor cost $89105
Actual output 1500 units
What is the labor efficiency variance for the month?
a $15,305 U
b $15,305 F
c $13,805 U
d $13,530 U