Question
Direct Labor Time Variance Maywood City Police uses variance analysis to monitor police staffing. The following table identifies three common police activities, the standard time
Direct Labor Time Variance
Maywood City Police uses variance analysis to monitor police staffing. The following table identifies three common police activities, the standard time to perform each activity, and their actual frequency to establish the expected cost to serve these activities.
Police Activity | Standard Hours per Activity | Actual Activities for Year | Total Employee Hours | ||||
Theft | 0.60 | 7,000 | 4,200 | ||||
Arrest | 1.50 | 18,000 | 27,000 | ||||
Patrol activities | 0.30 | 9,000 | 2,700 | ||||
33,900 |
The police are paid $25 per hour.
The actual amount of hours per activity for the year were as follows:
Police Activity | Actual Hours per Activity | ||
Theft | 0.75 | ||
Arrest | 2.00 | ||
Patrol activities | 0.40 |
a. Determine the total budgeted cost to perform the three police activities. Total budgeted cost $
b. Determine the total actual cost to perform the three police activities. Total actual cost $
c. Determine the direct labor time variance. $
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