Question
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
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) Quantity
Variance, (5) Actual Rate, (6) Standard Rate, (7) Price Variance, and (8) Explanation
E23-10 During March 2014, Toby Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data. Job Standard Total Actual Hours Costs Number Hours Costs A257 A258 A259 A260 221 450 300 116 $4,420 9,450 6,180 2,088 225 430 300 110 $4,500 8,600 6,000 2,200 Variance $ 80 F 850 U 180 U 112 F Total variance $838 UStep by Step Solution
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