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Kendra Company's standard labor cost of producing one unit of Product DD is 4 hours at the rate of $12.00 per hour. During August, 40,800 hours of labor are incurred at a cost of $12.10 per hour to produce 10,000 units of Product DD.

Instructions:

(a) Compute the total labor variance.

(b) Compute the labor price and quantity variances.

(c) Repeat (b), assuming the standard is 4.2 hours of direct labor at $12.25 per hour.

Accounting Basics, Accounting

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  • Reference No.:- M944392

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