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Company A makes a product that has the following direct labor standards: Standard direct labor hours .2 hours per unit Standard direct labor rate $
| Company A makes a product that has the following direct labor standards: | |||
| Standard direct labor hours | .2 hours per unit | ||
| Standard direct labor rate | $ 15 per hour | ||
| In January the company's budgeted production was 3,400 units but the | |||
| actual output was 3,500 units. The company used 640 direct labor hours | |||
| and the direct labor cost was $ 8,960. | |||
| a) What is the labor efficiency variance? | |||
| b) What is the labor rate variance? | |||
| c) In this problem explain what person(s) did a good job or a bad job | |||
| d) If the job took the whole month of January how many people worked on the job? | |||
| e) per their plan how long in minutes should it take to make one item? | |||
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
