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32. (Appendix) Warmuth Corporation has provided the following data concerning its direct labor costs for September:

The Labor Efficiency Variance for September would be recorded as a:

  • a.

    credit of $120,480.

  • B.

    debit of $120,480.

  • c.

    debit of $125,500.

  • d.

    credit of $125,500.

Standard hours = Standard hours per unit × Actual output = 8.8 × 6,600 = 58,080 Labor efficiency variance = Standard rate × (Actual hours - Standard hours) = $12 × (68,120 - 58,080) = $120,480 unfavorable

33. The following labor standards have been established for a particular product:

The following data pertain to operations concerning the product for the last month:

What is the labor rate variance for the month?

  • a.

    $687 F

  • b.

    $2,106 F

  • C.

    $1,410 F

  • d.

    $2,106 U

Actual rate = Labor cost

Actual hours

= $107,630

9,400 = $11.45

Labor rate variance = Actual hours × (Actual rate - Standard rate)

= 9,400 × ($11.45 - $11.60) = $1,410 favorable

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