Palmetto Orchards, Inc. developed the following standard costs for direct labor for one of their products, the apple pie
Posted: Sat May 07, 2022 7:54 pm
Palmetto Orchards, Inc. developed the following standard costs
for direct labor for one of their products, the apple pie:
Standard quantity Standard
price
Direct labor 0.25
hours $14.25 per hour
Budgeted production in its static planning budget is 1,000 pies
for September.
During September, Palmetto actually produced and sold 1,100 pies
using 280 direct labor hours at an actual wage rate of $15.00 per
hour.
September’s direct labor efficiency variance is:
$71.25 unfavorable
$285.00 favorable
$450.00 unfavorable
$75.00 unfavorable
for direct labor for one of their products, the apple pie:
Standard quantity Standard
price
Direct labor 0.25
hours $14.25 per hour
Budgeted production in its static planning budget is 1,000 pies
for September.
During September, Palmetto actually produced and sold 1,100 pies
using 280 direct labor hours at an actual wage rate of $15.00 per
hour.
September’s direct labor efficiency variance is:
$71.25 unfavorable
$285.00 favorable
$450.00 unfavorable
$75.00 unfavorable