Question
During March 2020, Toby Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data. Actual Standard
During March 2020, Toby Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data.
Actual | Standard | ||||||||||
Job Number | Hours | Costs | Hours | Costs | Total Variance | ||||||
A257 | 200 | $4,200 | 207 | $4,347 | $147 | F | |||||
A258 | 440 | 10,120 | 424 | 8,904 | 1,216 | U | |||||
A259 | 300 | 6,600 | 300 | 6,300 | 300 | U | |||||
A260 | 110 | 2,200 | 105 | 2,205 | 5 | F | |||||
Total variance | $1,364 | U |
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 replacement worker on one shift. Work on Job A260 was done for one day by a new trainee when a regular worker was absent. Prepare a report for the plant supervisor on direct labor cost variances for March. (Round actual rate and standard rate to 2 decimal places, e.g. 10.50.)
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