Hartley Company's standard labor cost per unit of output is $20.52 (1.8 hours times $11.40 per hour). During August, the company incurs 2, 100 hours of direct labor at an hourly cost of $10.90 per hour in making 1, 200 units of finished product. Compute the total, price, and quantity labor variances. Total labor variance $.Labor price variance $.Labor quantity variance $.

Instructions are listed below.

Explanation:

Giving the following information:

Hartley Company's standard labor cost per unit of output is $20.52 (1.8 hours times $11.40 per hour).

During August, the company incurs 2,100 hours of direct labor at an hourly cost of $10.90 per hour in making 1,200 units of the finished product.

We need to use the following formulas:

Direct labor price variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor price variance= (11.4 - 10.9)*2,100hours= $1,050 favorable

Direct labor quantity variance= (SQ - AQ)*standard rate

Direct labor quantity variance= (1,200 units*1.8 hours - 2,100)*11.4= $684 favorable

Total labor variance= Direct labor price variance - Direct labor quantity variance

Total labor variance= 1,050 + 684= $1,734 favorable

Another formula is:

Total labor variance= Estimated total cost - actual total cost

Total labor variance= (1.8*11.4*1,200) - (10.9*2,100)= $1,734 favorable

answer; experimentation;