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K&J Web Designs creates Web sites for businesses K&J has a basic Web site creation package that it offers for a flat fee of $730.
K&J Web Designs creates Web sites for businesses K&J has a basic Web site creation package that it offers for a flat fee of $730. This package includes everything that a business would need to have a simple but functional Web site built. K&J estimates that each of these Web sites should take, on average, 7.2 hours of Web designer time K&J pays its Web design employees an average of $42 per hour. Last month. K&J sold and built 160 Web sites for $730 each Web design employees worked a total of 800 hours at a total payroll cost of $39.200. Calculate the labor rate and efficiency variances for the past month. (Enter all variances as a positive number.) Labor Rate Variance $ Labor Efficiency Variance $ Calculate the standard amount of contribution margin (sales price less variable labor cost) that K&J would expect to make on an average Web site. (Round answer to 0 decimal places, e.g. 125.) Contribution margin $ per Web site Calculate the actual amount of contribution margin (sales price less variable labor cost) that K&J made, on average, on each Web site in the past month. (Round answer to 0 decimal places, e.g. 125.) Actual contribution margin $ per Web site
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