Human Resource Finance and Accounting

Question 2 The Play Some More Company produces toys for national distribution. Standards for a particular toy are: Labour: 2 hours per unit at $12.75 per hour. During the month of May, the company produced 1,000 units. Information for the month follows: Labour: 2,500 hours worked at a total cost of $33,000. a) Calculate the Labour Rate Variance and state if it is Favourable or Unfavourable. 4 marks b) Calculate the Labour Efficiency Variance and state if it is Favourable or Unfavourable. 4 marks c) State one reason why these variances in Part a) and Part b) could be Favourable or Unfavourable 2 marks Bu Paragraph R T 11