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Total Labor Variance, Labor Rate, and Efficiency

Botella, Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hours. During the month of April, 500,000 bottles were produced using 14,000 labor hours @ $9.00. The standard wage rate is $8.50 per hour.

Determine the total variance for production labor for the month of April and determine the labor rate and efficiency variances using the columnar and formula approaches.

HR Management, Management Studies

  • Category:- HR Management
  • Reference No.:- M9216414

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