Question 23.4: The following information is available for a manufacturer. C...

Fundamental Accounting Principles

The following information is available for a manufacturer. Compute the direct labor rate and efficiency variances and label them as favorable (F) or unfavorable (U).

Actual direct labor cost (6,250 hours @ $13 .10 per hour) . . .	$81,875	Actual production (units) . . . .	2,500 units
Standard direct labor hours per unit . . . . . . . . . . . . . . . . . . . .	2 .0	Budgeted production (units) . .	3,000 units
hours Standard direct labor rate per hour . . . . . . . . . . . . . . . . .	$13 .00

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