Business, 07.05.2021 01:40 YODIIZ6590
ABC Company produces a single product. The company has set the following standards for direct labor: Inputs Standard hours per product unit Standard rate Direct labor 3 hours per unit $10 per hour During the past month, 3,500 direct labor hours were used in making 1,300 units of product, and total direct labor cost was $36,750 for the month. Required: (1). What is the standard labor-hours allowed to make 1,300 units of product? (2). What is the labor rate variance? Identify whether this variance is F or U. Please provide a hypothetical explanation that would be consistent with your calculated labor rate variance, and specify which department you believe is responsible for that variance. (3). What is the labor efficiency variance? Identify whether this variance is F or U. Please provide a hypothetical explanation that would be consistent with your calculated labor efficiency variance, and specify which department you believe is responsible for that variance. (4). What is the total labor spending variance? Identify whether the variance is F or U.
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ABC Company produces a single product. The company has set the following standards for direct labor:...
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