Barberry Limited had the following variances for March: Labour rate variance $ 800 F Labour efficiency variance
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Question:
Barberry Limited had the following variances for March:
Labour rate variance $ 800
F Labour efficiency variance $2,400
U In the past, Barberry employed 10 people in production.
They included 6 senior workers and 4 assistants. In March, the company experimented with 5 senior workers and 5 assistants.
Required:
Answer both of the following questions in the box provided.
a) Would you recommend that the change be continued? Why or why not? (3 marks)
b) What impact could the change in labour mix have on Barberry’s material quantity variance? (2 marks)
Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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