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Gala Enterprises Reports the Following Information Regarding the Production on One

Question 213

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Gala Enterprises reports the following information regarding the production on one of its products for the month. Compute the direct labor cost variance, the direct labor rate variance, the direct labor efficiency variance and identify each as either favorable or unfavorable.
 Direct labor standard (2 hrs. @ $15/hr.)$30 per finished unit  Actual direct labor hours 60,800hrs. Actual finished units produced 30,000 units  Actual cost of direct labor $905,920\begin{array} { l l } \text { Direct labor standard (2 hrs. @ } \$ 15 / \mathrm { hr } . ) & \$ 30 \text { per finished unit } \\\text { Actual direct labor hours } & 60,800 \mathrm { hrs } . \\\text { Actual finished units produced } & 30,000 \text { units } \\\text { Actual cost of direct labor } & \$ 905,920\end{array}

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Direct labor cost variance:
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