jobs were completed, are provided.

$($Click the icon to view the actual direct labour costs.$)$

$($Click on the icon for more information.$)$

Required

More Information

Looking over last month's data, Jackson determines that Clean Ride's labour price

variance was $$1,151$ favourable, but the labour efficiency variance was $$1,560$

unfavourable. When Jackson presents his findings to Wilson, the latter is

furious. $"$Do you mean to tell me that my employees wasted $$1,560$ worth of time

last month? I've had enough. They had better shape up$,$ or else!" Jackson tries to

calm him down, saying that in this case the efficiency variance doesn't necessarily

mean that employees were wasting time. Jackson tells him that he is going to

perform a more detailed analysis and will get back to him with more information

soon.

Requirement $1.$ What is the budgeted cost of direct labour for $600$ detailing jobs?

Select the formula and enter the amounts to calculate the budgeted cost of direct labour for $600$ detailing jobs.

Actual direct labour costs

$[x,\{\begin{array}{ccc}\text{:}[& \text{T}\text{o}\text{t}\text{a}\text{l}\text{b}\text{u}\text{d}\text{g}\text{e}\text{t}\text{e}\text{d}costof& ]\\ & \text{d}\text{i}\text{r}\text{e}\text{c}\text{t}\text{l}\text{a}\text{b}\text{o}\text{u}\text{r}& \end{array}],[x,=]$

What is the budgeted cost of direct labour for $600$ detailing jobs?

How were the $$1,151$ favourable price variance and the $$1,560$ unfavourable labour

efficiency variance calculated? What was the company's flexible$-$budget variance?

What do you think Jackson meant when he said that $"$in this case, the efficiency

variance doesn't necessarily mean that employees were wasting time"?

For the $600$ detailing jobs performed last month, what is the actual direct labour input

mix percentage? What was the standard mix for labour?

Calculate the total direct labour mix and yield variances.

How could these variances be interpreted? Did the employees waste time? Upon

further investigation, you discover that there were some unfilled vacancies last month in

the unskilled labour positions that have recently been filled. How will this new information

likely impact the variances going forward?

Skilled $(2,006$ hours$)$

Unskilled $(944$ hours$)$

Total actual direct labour cost

$$,39,117$

$9,292$