Question
A company's direct labor standards for a given operation and the actual results for the current period are provided below: Standard rates : Level One
A company's direct labor standards for a given operation and the actual results for the current period are provided below: Standard rates: Level One $20 per hour Level Two $15 per hour Time to produce one unit: Two (2) Level One workers at 15-minutes each Three (3) Level Two workers at 10 minutes each Actual Results: Units produced: 10,000 Labor used: 4,000 hours of Level One workers at $25 per hour 6,800 hours of Level Two workers at $15 per hour Required: (Be sure to indicate whether the variance is favorable or unfavorable.) a. Compute the labor price (rate) variances for each worker level. b. Compute the labor efficiency variances for each worker level. c. Compute the labor mix variances for each worker level. d. Compute the labor yield variances for each worker level.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started