Florr Shine Corporation: Selected datafor April are given below:
Number of units produced 1,000 units
Number of actual direct labor hours worked 1,500 hours
Total actual direct labor costs 16,500
The standard cost card indicates that 1.5 hours at $10.00 of direct labor hour per unit.
a) Complete the following analysis of direct labor cost for the month:
Actual hours of input at the actual rate
Actual hours of input at the standard rate
Standard hours allowed for out at the standard rate
Actual rate per hour = 16500/1500 = $11
Actual hours of input at the actual rate = …
The solution computes actual hours of input at the actual rate, actual hours of input at the standard rate & standard hours allowed for out at the standard rate as well labor rate variance and labor efficiency variance.