Exercise 23-10

During March 2017, 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 210 218 480 462 A257 A258 A259 A260 $4,830 12,480 7,865 2,100 $5,014 10,626 7,498 2,162 $184 F 1,854 U 367 U 325 326 100 94 62 F Total variance $1,975 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 quantity variance, actual rate, standard rate and price variance to 2 decimal places, e.g. 10.50.) TOBY TOOL & DIE COMPANY Direct Labor Variance Report For the Month Ended March 31, 2017 Job No. Actual Hours Standard Hours Quantity Variance Actual Rate Standard Rate Price Variance A257 210 218 184 Favorable 23 23 0 Neither favorable nor unfavorable $ $ $ A258 480 462 462 Unfavorable 26 23 1440 Unfavorable $1 $1 A259 325 326 326 Favorable 24.20 23 390 Unfavorable $ A260 100 94 94 Unfavorable 21 23 200 Favorable $ $ X Totals 1066 Favorable Unfavorable 2030