Part a.

The following direct labor data pertain to the operations of Jacuzi Instrument Corporation. for the month of June:

Actual labor rate $16.80 per hr.

Actual hours used 2,580

Standard labor rate $16.00 per hr.

Standard hours allowed 2,650

Instructions

Prepare a matrix and calculate the labor variances.

price variance= ?

Quantity variance=?

Total labor variance = ?

Part b.

Lawn Pros Yard Services, Inc. is trying to establish the standard labor cost of a typical lawn that they cut for their customers each week. The following data have been collected from time and motion studies over the last several months:

Actual time spent on cutting 1.25 hours

Hourly wage rate $24.00

Payroll taxes 8% of wage rate

Equipment setup and downtime 10% of actual labor time

Cleanup and rest periods 10% of actual labor time

Fringe benefits 15% of wage rate

Instructions

(a) Determine the standard direct labor hours per cutting

(b) Determine the standard direct labor hourly rate.

(c) Determine the standard direct labor cost per setup and downtime

(d) If a a new customers lawn took 1.50 hours to cut at the standard hourly rate, what was the direct labor quantity variance?