Ben Schmidt, the manager of Hanover Bridge Construction Company, Germany, uses standards to evaluate the performance of
Question:
Ben Schmidt, the manager of Hanover Bridge Construction Company, Germany, uses standards to evaluate the performance of labor. Due to a recent fire breakout in its office, a considerable number of records have been lost, and Ben only has partial data for June, 2020. He knows that the total direct labor flexible-budget variance was €3,286 favorable. Moreover, a recent pay raise caused an unfavorable labor price variance for June of €2,314. The actual hours of input were 3,560 and the standard labor price was €20 per hour.
1. Find the actual labor rate per hour.
2. Determine the standard hours allowed for the output achieved.
Step by Step Answer:
Introduction To Management Accounting
ISBN: 9781292412566
17th Edition, Global Edition
Authors: Charles Horngren, Gary L Sundem, Dave Burgstahler