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hassock corp. produces woven wall hangings. standard hours of direct labor is 2 hours to produce a single unit. hassock's standard labor cost is $12 per hour. during august hassock produced 10,000 units and used 21,040 actual hours of direct labor at the cost of $11.90 per hour, what is hassock's labor rate variance for august?
hassock corp. produces woven wall hangings. standard hours of direct labor is 2 hours to produce a single unit. hassock's standard labor cost is $12 per hour. during august hassock produced 10,000 units and used 21,040 actual hours of direct labor at the cost of $11.90 per hour, what is hassock's labor rate variance for august?
From the above given information, The Hassock'slaborratevariancefor August is12,480 Unfavorable.Given:Actual hours = 21,040Standard rate = 12Standard hours = Standard Hour × Unit produce= 2 × 10,000Labor Efficiency variance= (Standard hrs. - Actual hrs.) × Standard rate= (20,000 - 21,041) × 12=12,480UnfavorableThelabor efficiency variancecalculates how effectively labor can be used in relation to expectations. Thevariancecan be used to highlight the parts of the production process that require more labor than expected. Industrial engineers will review the underlying process to determine if it can be improved to decrease the number of production hours necessary if thevarianceoutcome is unfavorable. Some potential improvements include:an expedited product design to speed up assemblya decrease in the amount of scrap the process producesUpgrading the level of automationWorkflow modificationIf this is not possible, the typical amount of time needed to produce a good is increased to better reflect the level ofproductivity.Learn more aboutLabor Efficiency variance,herebrainly.com/question/25419606#SPJ4...