Exercise 25-10

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
A257		221		$4,420		225		$4,500		$80	F
A258		450		9,450		430		8,600		850	U
A259		300		6,180		300		6,000		180	U
A260		116		2,088		110		2,200		112	F
Total variance										$838	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.

Exercise 25-10 During March 2017, Toby Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data. Actual ob Number Hours Costs Hours Costs Total Variance A257 A258 A259 A260 Total variance 221 $4,420 225 $4,500 450 300 116 2,088 110 2,200 $80 F 850 U 180 U 112 F $838 U 9,450 6,180 430 8,600 300 6,000 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 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 varance, actual rate, standard rate and price variance to 2 decimal places, e.g. 10.so.) TOBY TOOL & DIE COMPANY Direct Labor Variance Report Actual Hours Standard Hours Quantity Variance Actual Rate Standard Rate Price Variance Job No. A257 A258 A259 A260 Totals