Unformatted text preview: $59,850. This means that the employees took less time than budgeted to produce the 13,300 sets of bases. 13,300 units were produced, and the company expected that the labor cost would be $4.50 per set, for a total labor cost of $59,850. This can also be analyzed by identifying the total hours of labor it should have taken to produce 13,300 sets of bases and multiplying by the cost per hour of labor (13,300 sets × .5 hours = 6,650 hours × $9 per hour = $59,850). Because only 6,500 direct labor hours were needed instead of the 6,650 hours expected, the direct labor efficiency variance is favorable....
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- Spring '09
- actual costs, flexible budget costs, actual labor costs, direct labor hour., unfavorable rate variance, labor rate variance