At a recent seminar you attended, the invited speaker was discussing some of the advantages and disadvantages of standard costs in terms of evaluating performance and motivating goal congruent behavior on the part of employees One criticism of standard costs in particular caught your attention The use of conventional standard costs may not provide appropriate incentives for improvements needed to compete effectively with world class organizations The speaker then discussed so called continuous improvement standard costs Such standards embody systematically lower costs over time For example, on a monthly basis, it might be appropriate to budget a 1 0 reduction in per unit direct labor cost Assume that the standard wage rate into the foreseeable future is $26 per hour Assume, too, that the budgeted labor hour standard for October of the current year is 1 90 hours and that this standard is reduced each month by 1 During December of the current year the company produced 9,000 units of XL 10, using 16,800 direct labor hours The actual wage rate per hour in December was $30 00 Required 1 Prepare a table that contains the standard labor hour requirement per unit and standard direct labor cost per unit for the 4 months, October through January 2 Compute the direct labor efficiency variance for December Was this variance favorable or unfavorable Complete this question by entering your answers in the tabs below Required 1 Required 2 Prepare a table that contains the standard labor hour requirement per unit and standard direct labor cost per unit for the 4 months, October through January (Do not round intermediate calculations Round your Standard Direct Labor Cost Unit answers to 2 decimal places and Standard Labor Hour Requirement Unit answers to 5 decimal places ) Month Standard Labor Hour Requirement Unit Standard Direct Labor Cost Unit hour per unit October November December January hour per unit hour per unit hour per unit Complete this question by entering your answers in the tabs below Required 1 Required 2 Compute the direct labor efficiency variance for December Was this variance favorable or unfavorable (Round your final answer to nearest whole dollar amount ) Direct labor efficiency variance

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At a recent seminar you attended, the invited speaker was discussing some of the advantages and disadvantages of standard costs in terms of evaluating performance and motivating goal congruent behavior on the part of employees  One criticism of standard costs in particular caught your attention  The use of conventional standard costs may not provide appropriate incentives for improvements needed to compete effectively with world class organizations  The speaker then discussed so called continuous improvement standard costs  Such standards embody systematically lower costs over time  For example, on a monthly basis, it might be appropriate to budget a 1 0  reduction in per unit direct labor cost  Assume that the standard wage rate into the foreseeable future is $26 per hour  Assume, too, that the budgeted labor hour standard for October of the current year is 1 90 hours and that this standard is reduced each month by 1   During December of the current year the company produced 9,000 units of XL 10, using 16,800 direct labor hours  The actual wage rate per hour in December was $30 00  Required  1  Prepare a table that contains the standard labor hour requirement per unit and standard direct labor cost per unit for the 4 months, October through January  2  Compute the direct labor efficiency variance for December  Was this variance favorable or unfavorable  Complete this question by entering your answers in the tabs below  Required 1 Required 2 Prepare a table that contains the standard labor hour requirement per unit and standard direct labor cost per unit for the 4 months, October through January  (Do not round intermediate calculations  Round your  Standard Direct Labor Cost Unit  answers to 2 decimal places and  Standard Labor Hour Requirement Unit  answers to 5 decimal places ) Month Standard Labor Hour Requirement Unit Standard Direct Labor Cost Unit hour per unit October November December January hour per unit hour per unit hour per unit Complete this question by entering your answers in the tabs below  Required 1 Required 2 Compute the direct labor efficiency variance for December  Was this variance favorable or unfavorable  (Round your final answer to nearest whole dollar amount ) Direct labor efficiency variance

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At a recent seminar you attended, the invited speaker was discussing some of the advantages and disadvantages

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