ExpertCPA · Question 02 · Area I: Business Analysis
Vanguard Corp. uses a standard costing system. For the month of June, the following data is available regarding direct labor:<br/><br/>- Standard Direct Labor Rate: $24 per hour<br/>- Actual Direct Labor Rate: $26 per hour<br/>- Standard Hours Allowed for Actual Production: 5,000 hours<br/>- Actual Hours Worked: 4,800 hours<br/><br/>What is the Direct Labor Rate Variance and the Direct Labor Efficiency Variance for June?
Vanguard Corp. uses a standard costing system. For the month of June, the following data is available regarding direct labor:<br/><br/>- Standard Direct Labor Rate: $24 per hour<br/>- Actual Direct Labor Rate: $26 per hour<br/>- Standard Hours Allowed for Actual Production: 5,000 hours<br/>- Actual Hours Worked: 4,800 hours<br/><br/>What is the Direct Labor Rate Variance and the Direct Labor Efficiency Variance for June?
Answer options:
Rate Variance: $10,000 Unfavorable; Efficiency Variance: $4,800 Favorable
Rate Variance: $9,600 Favorable; Efficiency Variance: $5,200 Unfavorable
Rate Variance: $9,600 Unfavorable; Efficiency Variance: $4,800 Favorable
Rate Variance: $10,000 Favorable; Efficiency Variance: $4,800 Unfavorable
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