Heron operates Modem Detail Enterprises, an auto detaling company with 20 employees Jake Anderson has recently been hired by Heron as a controler Modem Details previous accountant had done very te in the ana of variance analysis on believes that the company could benefit from a greater understanding of his business processes Because of the labour-rtensive nature of the business, he decides to focus on calculating labour varances. Heron examines past acting and establishes some standards for the price and quantity of labour. While Modem Details employees eam a range of hourly wages, they fall into two general categories skilled labour, with an average wage of $20 per hour, and asked abou average wage of $7 per hour. One standard 8-hour detailing job typically requires a combination of 5 skilled hours and 3 unskilled hours. Actual data from last month, when 610 detaling jobs were completed are provided ok the icon to view the actual direct labour costs.) (Click on the icon for more information) X d ement 1. What is the budgeted cost of direct labour for 610 detailing jobs? the fo emer by sel the vi illed ( led ( Total elect t riance Required 1. What is the budgeted cost of direct labour for 610 detailing jobs? 2. How were the $2.744 tavourable price variance and the $2.380 unfavourable labour officiency variance calculated? What was the company's flexible-budget variance? 3. What do you think Anderson meant when he said that "in this case, the efficiency variance doesn't necessarily mean that employees were wasting time 4. For the 610 detaling jobs performed last month, what is the actual direct labour input mix percentage? What was the standard mix for labour? 5. Calculate the total direct labour mix and yield variances 6. How could these variances be interpreted? Did the employees waste time? Upon further investigation, you discover that there were some unfiled vacancies last month in the unskilled labour positions that have recently been filled How will this new information ly impact the variances going forward? ited ( ted c Total Print Done Cancel More information Looking over last month's data, Anderson determines that Modem Details our price variance was 12.744 favourable, but the labour effoency vanance W $2.380 unfavourable When Anderson presents his fedingi to Heron, the later is furious "Do you mean to tell me that my employees wasted $2.300 worth of me last month? I've had enough. They had better shapes calm him down, saying that in this case the efficiency variance doesn't necessary mean that employees were wasting time Anderson tets him that he is going to perform a more detailed analysis and will get back to him with more information ose Anderson tries to soon d? What w other tavo inal an Print Done Actual direct labour costs her favourable (F) runtavo 3,200 hou Used (1.570) Total actual direct labour cost $ CLAM 9380 714 israse the efficiency variance doesn't necessarily mean that employees were wa Print Done