During March 2002, Tenza Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data.

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 replace- ment 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 labor cost variances for March. The report should have columns for (1) Job No., (2) Actual Hours, (3) Standard Hours, (4) Labor Quantity Variance, (5) Actual Rate, (6) Standard Rate, (7) Labor Price Variance, and (8) Explanations.

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Actual Standard Job Number Hours Costs Hours Costs Total Variance A257 220 $ 4,400 226 $4,520 $ 120 F A258 450 10,350 430 8,600 1,750 U A259 300 6,150 300 6,000 150 U A260 116 2,088 110 2,200 112 F Total variance $1,668 U