Asked by
jasmine upper
on Nov 17, 2024
Verified
If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual direct labor incurred is 500 hours at $17, the direct labor time variance is $1,700 unfavorable.
Direct Labor Time Variance
The difference between the actual hours worked and the standard hours allowed for the work done, multiplied by the standard labor rate.
Direct Labor
The cost of wages for employees who directly manufacture or produce goods.
Unfavorable
A term used to describe outcomes or variances that negatively impact a business financially or operationally.
- Discern the distinctions between diverse categories of variances, notably direct labor time variance, direct labor rate variance, and direct materials quantity variance.
- Absorb the techniques for calculation and explanation of favorable and unfavorable variances.
Verified Answer
SP
Learning Objectives
- Discern the distinctions between diverse categories of variances, notably direct labor time variance, direct labor rate variance, and direct materials quantity variance.
- Absorb the techniques for calculation and explanation of favorable and unfavorable variances.