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Accounting

The Freedom CLothes Company produced 18,000 units during June of the current year. The Cutting Department used 3,500 direct labor hours at actual rate of 12.10 per hour. THe Sewing Department used 5,800 direct labor hours at an actual rate of 11.80 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is 12.00. The standard labor time for the Cutting and Sewing departments is 0.20 hour and 0.30 hour per unit, respectively.

What is the total direct labor variance for (1) the cutting department?

a. 3,500 favorable
b. 1,200 Favorable
c. 850 favorable
d. 350 favorable

What is the total direct labor variance for (2) the sewing department?

a. 5,960 favorable
b. 4,800 unfavorable
c. 3,640 unfavorable
d. 1,160 favorable

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9403003

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