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Assume that Nortel manufactures specialty electronic circuitry through a unique photoelectronic process. One of the primary products, Model ZX40, has...

Assume that Nortel manufactures specialty electronic circuitry through a unique photoelectronic process. One of the primary products, Model ZX40, has a standard labor time of 0.5 hour and a standard labor rate of $14.50 per hour. During February, the following activities pertaining to direct labor for ZX40 were recorded:

Direct labor hours used2,200Direct labor cost$36,000Units of ZX40 manufactured4,600

 

(a) Determine the labor rate variance.




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(b) Determine the labor efficiency variance.



 Answer



(c) Determine the total flexible budget labor cost variance.



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