Tidex Company is a manufacturer of cleaning detergent. Cleanx is manufactured on a weekly basis. The...
Tidex Company is a manufacturer of cleaning detergent. Cleanx is manufactured on a weekly basis. The following standards have been established to produce 10,000 litres of Cleanx.
Standard direct labour hours of 5,000 to mix 10,000 litres of
detergent
Standard direct labour rate per hour: $18
Actual direct labour hours consumed: 5,500
Actual direct labour rate: $18.45
Calculate the Labour Quantity Variance (LQV).
|
$11,475 Favourable |
|
$9,000 Unfavourable |
|
$2,475 Favourable |
|
$2,475 Unfavourable |
| Tidex Company is a manufacturer of cleaning detergent. Cleanx is manufactured on a weekly basis. The following standards have been established to produce 10,000 litres of Cleanx: Standard direct labour hours of 5,000 to mix 10,000 litres of detergent Standard direct labour rate per hour: $18 Actual direct labour hours consumed: 5,500 Actual direct labour rate: $18.45 Calculate the Labour Price Variance (LPV) | |
|
$11,475 Favourable |
|
|
$9,000 Unfavourable |
|
|
$2,475 Favourable |
|
|
$2,475 Unfavourable |
Homework Answers
|
1. Labor quantity Variance = (SH-AH) *SR = (5,000-5,500)*18 = 9,000 Unfavorable |
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