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$12. Payroll taxes and fringe benefits are an additional $3 per hour.
Manufacturing overhead. Overhead is applied at a rate of $7 per direct
labor hour.
Instructions
a. Compute Stefani's total standard cost per unit.
E11-6
Lewis 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, 40,600
hours of labor are incurred at a cost of $12.15 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 4.1 hours of direct labor at
$12.25 per hour.
E11-12
Byrd Co