Calculate the direct labor rate variance for June.

Subject: Business    / Accounting

ABC Company began operations on June 1, 2019. For its first month of operations, ABC
Company established the following standards for unit of its single product:

standard quantity standard price

direct materials 8 pounds $3.50 per pound
direct labor 7 hours $15.00 per hour
variable overhead 7 hours $7.50 per hour

The following information is available for surge for the month of June:

1. 65,000 pounds of direct materials were purchased at a total cost of $188,500.
2. 45,000 direct labor hours were worked at a total cost of $731,250.
3. The variable overhead cost for the month totaled $325,000.
4. 6,500 units were produced.
5. At June 30, ABC Company had 8,000 pounds of direct materials on hand.

Calculate the direct labor rate variance for June. If the variance is favorable, enter

an F after your number with a space between the number and the F (i.e., 10,000 F). If

the variance is unfavorable, enter a U after your number with a space between the

number and the U (i.e., 10,000 U).


 

PLACE THIS ORDER OR A SIMILAR ORDER WITH BEST NURSING TUTORS TODAY AND GET AN AMAZING DISCOUNT

get-your-custom-paper

The post Calculate the direct labor rate variance for June. appeared first on BEST NURSING TUTORS .

 
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.