Acc349 E11-6 Kendra Company’s standard labor cost of producing one unit of Product DD_with explanation
Kendra Company’s standard labor cost of producing one unit of Product DD is 4 hours at the rate of $12.00 per hour. During August, 40,800 hours of labor are incurred at a cost of $12.10 per hour to produce 10,000 units of Product DD.
- Compute the total labor variance.
- Compute the labor price and quantity variances.
- Repeat (b), assuming the standard is 4.2 hours of direct labor at $12.25 per hour.