The following data for Kitchen Tile Company related to the production of 18,000 tiles during the past month.
The company allocates fixed overhead costs at a standard rate of $19 per direct labor hour.
Direct Labor:
Standard cost is 6 tiles per hour at $24.00 per hour
Actual cost per hour was $24.50
Labor efficiency variance was $6,720 F
Fixed overhead costs:
Estimated = $60,000
Actual = $58,720
Question:
How many actual labor hours were worked to produce the 18,000 tiles, what is the price variance
for direct labor, and what is the budget variance for fixed cost?
