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Hartley Company?s standard labor cost per unit of output is $24.36 (2.1 hours x $11.60 per
hour). During August, the company incurs 2,300 hours of direct labor at an hourly cost of $11.33
per hour in making 1,100 units of finished product.
Compute the total, price, and quantity labor variances.
Total labor variance
$ FavorableUnfavorableNeither favorable nor unfavorable
Labor price variance
$ FavorableUnfavorableNeither favorable nor unfavorable
Labor quantity variance
$ FavorableUnfavorableNeither favorable nor unfavorable
Solution
Total Labor Variance: = Total Hours X Hourly Cost
=2300X11.33
=26059
Favourable
Labor Price Vaiance= 11.60 - 11.33
=.27 Favorable
Labor Quantity VarianceB,
=23069Â Â Â Â Â Â Â Â Â Â Â Â Â 18 Favourities
Hartley Company-s standard labor cost per unit of output is $24-36 (2-.docx

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Hartley Company-s standard labor cost per unit of output is $24-36 (2-.docx

  • 1. Hartley Company?s standard labor cost per unit of output is $24.36 (2.1 hours x $11.60 per hour). During August, the company incurs 2,300 hours of direct labor at an hourly cost of $11.33 per hour in making 1,100 units of finished product. Compute the total, price, and quantity labor variances. Total labor variance $ FavorableUnfavorableNeither favorable nor unfavorable Labor price variance $ FavorableUnfavorableNeither favorable nor unfavorable Labor quantity variance $ FavorableUnfavorableNeither favorable nor unfavorable Solution Total Labor Variance: = Total Hours X Hourly Cost =2300X11.33 =26059 Favourable Labor Price Vaiance= 11.60 - 11.33 =.27 Favorable Labor Quantity VarianceB, =23069Â Â Â Â Â Â Â Â Â Â Â Â Â 18 Favourities