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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 $4,000 210 $4,200 $200 F
A258 480 11,040 468 9,360 1,680 U
A259 310 6,727 312 6,240 487 U
A260 110 1,980 103 2,060 80 F
Total variance $1,887 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.)

TOBY TOOL & DIE COMPANY Direct Labor Variance Report For the Year Ended March 31, 2020For the Month Ended March 31, 2020March 31, 2020

Job No.

Actual Hours

Standard Hours

Quantity Variance

Actual Rate

Standard Rate

Price Variance

Price Variance

A257 $ FavorableUnfavorableNeither favorable nor unfavorable $ $ $ FavorableNeither favorable nor unfavorableUnfavorable Rush JobNew TraineeRepeat JobReplacement Worker
A258 UnfavorableFavorableNeither favorable nor unfavorable $ $ FavorableUnfavorableNeither favorable nor unfavorable New TraineeReplacement WorkerRush JobRepeat Job
A259 Neither favorable nor unfavorableFavorableUnfavorable $ $ Neither favorable nor unfavorableUnfavorableFavorable Repeat JobNew TraineeRush JobReplacement Worker
A260 UnfavorableFavorableNeither favorable nor unfavorable $ $ FavorableNeither favorable nor unfavorableUnfavorable Rush JobRepeat JobNew TraineeReplacement Worker
Totals $ UnfavorableFavorableNeither favorable nor unfavorable $ Neither favorable nor unfavorableFavorableUnfavorable

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