Question
3. Labor Variances Ellen Chenoweth, the manager of the city of St. Paul road maintenance shop, uses standards to judge performance. Because a clerk mistakenly
3. Labor Variances Ellen Chenoweth, the manager of the city of St. Paul road maintenance shop, uses standards to judge performance. Because a clerk mistakenly discarded some labor records, however, Ellen has only partial data for April. She knows that the total direct-labor flexible-budget variance was $1,643 favorable. Moreover, a recent pay raise produced an unfavorable labor price variance for April of $1,157. The actual hours of input were 1,780 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. 4. Labor and Materials Variances Standard direct-labor rate $ 15.00 Actual direct-labor rate $ 11.50 Standard direct-labor hours 10,000 Direct-labor quantity variance-unfavorable $ 9,000 Standard unit price of materials $ 4.60 Actual quantity purchased and used 2,500 Standard quality allowed for actual production 1,850 Materials purchase price variance favorable $ 500
1. Compute the actual hours worked, rounded to the nearest hour.
2. Compute the actual purchase price per unit of materials, rounded to the nearest penny
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