During March 2016, Garner Tool & Die Company worked on four jobs. A review of the direct
Question:
During March 2016, Garner Tool & Die Company worked on four jobs. A review of the direct labour costs reveals the following summary data:
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Analysis reveals that Job A257 was a repeat job. Job A258 was a rush order that required overtime work at premium rates of pay. Job A259 required a more experienced replacement worker on one shift. Work on Job A260 was done for one day by a new trainee when a regular worker was absent.
Instructions
Prepare a report for the plant supervisor on direct labour cost variances for March. The report should have columns for the following headings: (1) Job No., (2) Actual Hours, (3) Standard Hours, (4) Labour Quantity Variance, (5) Actual Rate, (6) Standard Rate, (7) Labour Price Variance, and (8) Explanations.
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