15. Lebron Co. manufactures product X with the following standard costs:Direct materials, 20 yards @ ₱13.50 per yard₱270Direct labor, 4 hours @ ₱90.00 per hour₱360The following information pertains to the month of May:Direct materials, 18,000 yards @ ₱13.80 per yard ₱248,400Direct labor, 2,100 hours @ ₱91.50 per hour ₱192,150Direct materials used 9,500 yardsProduction during May 500 unitsWhat is the direct labor rate variance? Show solutionGroup of answer choices3,150 U3,150 F9,000 U9,000 F

Direct Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked

Answered: Lebron Co. manufactures product X with…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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15.

Lebron Co. manufactures product X with the following standard costs:

Direct materials, 20 yards @ ₱13.50 per yard	₱270
Direct labor, 4 hours @ ₱90.00 per hour	₱360

The following information pertains to the month of May:

Direct materials, 18,000 yards @ ₱13.80 per yard	₱248,400
Direct labor, 2,100 hours @ ₱91.50 per hour	₱192,150
Direct materials used	9,500 yards
Production during May	500 units

What is the direct labor rate variance? Show solution

Group of answer choices

3,150 U

3,150 F

9,000 U

9,000 F

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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