(Standard setting; team project) As a four-person team, choose an activity that is commonly performed every day, such as taking a shower/bath, preparing a meal, or doing homework. Have each team member time him¬ self/herself performing that activity for two days and then develop a stan¬ dard time for the team. Now have the team members time themselves performing the same activity for the next five days.

a. Using an assumed hourly wage rate of $12, calculate the labor efficiency variance for your team.

b. Prepare a list of reasons for the variance.

C. How could some of the variance have been avoided?

LO.1