Delaware Inc. uses a standard cost system. The company experienced the following results related to direct labor in December 2008: Actual hours worked 49,500 Standard hours for production 46,200 Actual direct labor rate $9.25 Standard direct labor rate $9.75 a. Calculate the total actual payroll. b. Determine the labor rate variance c. Determine the labor quantity variance. .d. What concerns do you have about the variances in part (b) and (c)?

Question

Delaware Inc. uses a standard cost system.  The company experienced the following results related to direct labor in December 2008: Actual hours worked		49,500 Standard hours for production	46,200 Actual direct labor rate		  $9.25 Standard direct labor rate	  $9.75  a.	Calculate the total actual payroll. b.	Determine the labor rate variance c.	Determine the labor quantity variance. .d.	What concerns do you have about the variances in part (b) and (c)?