MA53 Problem: Variances – Addy Company

MA53 Problem: Variances – Addy Company

Addy Company's direct labour costs are as follows:Standard direct labour hours 30,000Actual direct labour hours 29,000Direct labour efficiency variance, favourable $4,000

Direct labour rate variance, favourable $5,800Total gross wages $110,200

 Required -

a. What was Addy's standard direct labour rate? b. What was Addy's actual direct labour rate