Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration

Q12QS

Expert-verified
Financial & Managerial Accounting
Found in: Page 969
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Frontera Company’s output for the current period results in a $20,000 unfavorable direct labor rate variance and a $10,000 unfavorable direct labor efficiency variance. Production for the current period was assigned a $400,000 standard direct labor cost. What is the actual total direct labor cost for the current period?

The actual total direct labor cost for the current period is $430,000.

See the step by step solution

Step by Step Solution

Step 1: Meaning of Direct Labor

Direct labor denotes the labor force directly associated with the production department of a business concern. The cost spent by a business on its production department’s labor force is considered a direct cost in the books.

Step 2: Computation of actual total direct labor cost

ParticularsAmounts ($)
Standard direct labor cost 400,000
Add: Unfavorable direct labor rate variance20,000
Add: Unfavorable direct labor efficiency variance 10,000
Actual total direct labor cost $430,000

Most popular questions for Business-studies Textbooks

Icon

Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.