Question
During March 2022, Novak Company worked on four jobs. A review of the direct labour costs reveals the following summary data: Actual Standard Job Number
During March 2022, Novak Company worked on four jobs. A review of the direct labour costs reveals the following summary data:
Actual | Standard | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Job Number | Hours | Costs | Hours | Costs | Total Variance | ||||||||||
A257 | 220 | $4,840 | 226 | $4,972 | $132 | Favourable | |||||||||
A258 | 450 | 10,350 | 427 | 9,394 | 956 | Unfavourable | |||||||||
A259 | 240 | 5,460 | 240 | 5,280 | 180 | Unfavourable | |||||||||
A260 | 115 | 2,070 | 110 | 2,420 | 350 | Favourable | |||||||||
Total variance | $654 | Unfavourable |
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 factory supervisor on direct labour cost variances for March.
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