Unformatted text preview: of $.35 per minute. • Actual direct labor minutes and cost used during the year were 8,000,000 minutes at a cost of $.30 per minute. Based on this information, calculate the direct labor rate and efficiency variances. AM used X AR AM used X SR SM allowed X SR 8,000,000 minutes X $.30 8,000,000 min X $.35 6,000,000 min X $.35 = $2,400,000 = $2,800,000 = $2,100,000 DL rate variance = $400,000 F DL efficiency var. = $700,000 U Overall Variance = $300,000 U SQ allowed = How manyminutes should have been used for the production of 100,000 units? 60 minutes x 100,000 = 6,000,000...
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This note was uploaded on 01/11/2011 for the course ACC 200 taught by Professor Buckless during the Winter '08 term at N.C. State.
- Winter '08
- Managerial Accounting