Davenport Construction Associates compares actual results with a flexible budget. The standard direct labor rates used in the flexible budget are established each year at the time the annual plan is formulated and held constant for the entire year.

The standard direct labor rates in effect for the current fiscal year and the standard hours allowed for the actual output of remodeling work for September are shown in the following schedule:

The wage rates for each labor class increased under the terms of a new contract.
The standard wage rates were not revised to reflect the new contract.
The actual direct labor-hours worked and the actual direct labor rates per hour experienced for the month of September were as follows:

Required:
(a). Calculate total direct labor variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input the amount as positive value. Omit the "$" sign in your response.)
Total direct labor variance $ ________$(14,220.00)Unfav
(b). Calculate direct labor price and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "$" sign in your response.)
Direct labor price variance $ _________$(5,460.00)Unfav
Efficiency variance $ _______________$(8,760.00)Unfav
(c). Calculate Direct labor mix and yield variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your final answer to nearest dollar value. Do not round your intermediate calculations. Omit the "$" sign in your response.)
Direct labor mix $ ___________ $(1,410.00)Unfav
Yield variances $___________$(7,350.00)Unfav

Transcribed Image Text:

Worker Standarod Standard Direct Classification Direct Labor Labor-Hours Rate per Hour Allowed for Output S 24 24 15 460 460 460 Worker Actual Direct Classification Labor Rate Actual Direct per Hour Labor-Hours S 30 24 20 560 750 420