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 | $4,000 | 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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