Phil Renton operates Super Clean Enterprises, an auto detailing company with 20 employees. Jim Anderson has recently been hired by Renton as a controller. Super Clean's previous accountant had done very little in the area of variance analysis, but Renton believes that the company could benefit from a greater understanding of his business processes. Because of the labour-intensive nature of the business, he decides to focus on calculating labour variances. Renton examines past accounting records and establishes some standards for the price and quantity of labour. While Super Clean's employees earn a range of hourly wages, they fall into two general categories: skilled labour, with an average wage of $21 per hour, and unskilled labour, with an 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 590 detailing jobs were completed, are provided. E (Click the icon to view the actual direct labour costs.) (Click on the icon for more information.) Required Requirement 1. What is the budgeted cost of direct labour for 590 detailing jobs? Select the formula and enter the amounts to calculate the budgeted cost of direct labour for 590 detailing jobs. Total budgeted cost of direct labour Requirement 2. How were the $5,845 favourable price variance and the $2,870 unfavourable labour efficiency variance calculated? What was the company's flexible-budget variance? Begin by selecting the formula and enter the amounts to calculate the total direct labour price variance. Identify each variance as either favourable (F) or unfavourable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Round all intermediate calculations to four decimal places, XXXXX. Round your final answers to the nearest whole dollar.) = Price variance Skilled Unskilled OOO Total Now select the formula and enter the amounts to calculate the total direct labour efficiency variance. Identify each variance as either favourable (F) or unfavourable (U). (For variances with a $0 balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label. Round your final answers to the nearest whole dollar.) Efficiency variance = Skilled ) x Unskilled Total Requirement 3. What do you think Renton meant when said that "in this case the efficiency variance doesn't necessarily mean that employees were wasting time"? V variance can be the result of which employees worked on the project, not just how many hours were spent. If In a company where there is a mixture of workers, some at higher wages and others at lower, all working on the same projects, a(n) higher paid workers worked more than their standard percentage of the time, an) variance will result. Requirement 4. For the 590 detailing jobs performed last month, what is the actual direct labour input mix percentage? What was the standard mix for labour? (Round the percentage amounts to the nearest tenth, X.X%) Actual quantity of Budgeted quantity of Budgeted input Actual mix input for actual output mix Skilled % % Unskilled % % Total % Requirement 5. Calculate the total direct manufacturing labour mix and yield variances. Begin by selecting the formula and entering the amounts to calculate the total direct labour mix variance. Identify each variance as either favourable (F) or unfavourable (U). (Enter any percentages in decimal format to three decimal places, X.XXX. Round your final answers to the nearest whole dollar.) ) X = Mix variance Skilled x Unskilled Total Next select the formula and enter the amounts to calculate the total direct labour yield variance. Identify each variance as either favourable (F) or unfavourable (U). (Enter any percentages in decimal format to three decimal places, X.XXX. Round your final answers to the nearest whole dollar.) Yield variance Skilled Unskilled ) X Total A Actual direct labour costs * More Information . X Skilled (3,170 hours) Unskilled (1,520 hours) Total actual direct labour cost $ 61,815 9,550 $ 71,365 Looking over last month's data, Anderson determines that Super Clean's labour price variance was $5,845 favourable, but the labour efficiency variance was $2,870 unfavourable. When Anderson presents his findings to Renton, the latter is furious. "Do you mean to tell me that my employees wasted $2,870 worth of time last month? I've had enough. They had better shape up, or else!" Anderson tries to calm him down, saying that in this case the efficiency variance doesn't necessarily mean that employees were wasting time. Anderson tells him that he is going to perform a more detailed analysis and will get back to him with more information Print Done soon. Each vallance as entrer levourere von Navourable to enter an Print Done Yield Variance Phil Renton operates Super Clean Enterprises, an auto detailing company with 20 employees. Jim Anderson has recently been hired by Renton as a controller. Super Clean's previous accountant had done very little in the area of variance analysis, but Renton believes that the company could benefit from a greater understanding of his business processes. Because of the labour-intensive nature of the business, he decides to focus on calculating labour variances. Renton examines past accounting records and establishes some standards for the price and quantity of labour. While Super Clean's employees earn a range of hourly wages, they fall into two general categories: skilled labour, with an average wage of $21 per hour, and unskilled labour, with an 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 590 detailing jobs were completed, are provided. E (Click the icon to view the actual direct labour costs.) (Click on the icon for more information.) Required Requirement 1. What is the budgeted cost of direct labour for 590 detailing jobs? Select the formula and enter the amounts to calculate the budgeted cost of direct labour for 590 detailing jobs. Total budgeted cost of direct labour Requirement 2. How were the $5,845 favourable price variance and the $2,870 unfavourable labour efficiency variance calculated? What was the company's flexible-budget variance? Begin by selecting the formula and enter the amounts to calculate the total direct labour price variance. Identify each variance as either favourable (F) or unfavourable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Round all intermediate calculations to four decimal places, XXXXX. Round your final answers to the nearest whole dollar.) = Price variance Skilled Unskilled OOO Total Now select the formula and enter the amounts to calculate the total direct labour efficiency variance. Identify each variance as either favourable (F) or unfavourable (U). (For variances with a $0 balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label. Round your final answers to the nearest whole dollar.) Efficiency variance = Skilled ) x Unskilled Total Requirement 3. What do you think Renton meant when said that "in this case the efficiency variance doesn't necessarily mean that employees were wasting time"? V variance can be the result of which employees worked on the project, not just how many hours were spent. If In a company where there is a mixture of workers, some at higher wages and others at lower, all working on the same projects, a(n) higher paid workers worked more than their standard percentage of the time, an) variance will result. Requirement 4. For the 590 detailing jobs performed last month, what is the actual direct labour input mix percentage? What was the standard mix for labour? (Round the percentage amounts to the nearest tenth, X.X%) Actual quantity of Budgeted quantity of Budgeted input Actual mix input for actual output mix Skilled % % Unskilled % % Total % Requirement 5. Calculate the total direct manufacturing labour mix and yield variances. Begin by selecting the formula and entering the amounts to calculate the total direct labour mix variance. Identify each variance as either favourable (F) or unfavourable (U). (Enter any percentages in decimal format to three decimal places, X.XXX. Round your final answers to the nearest whole dollar.) ) X = Mix variance Skilled x Unskilled Total Next select the formula and enter the amounts to calculate the total direct labour yield variance. Identify each variance as either favourable (F) or unfavourable (U). (Enter any percentages in decimal format to three decimal places, X.XXX. Round your final answers to the nearest whole dollar.) Yield variance Skilled Unskilled ) X Total A Actual direct labour costs * More Information . X Skilled (3,170 hours) Unskilled (1,520 hours) Total actual direct labour cost $ 61,815 9,550 $ 71,365 Looking over last month's data, Anderson determines that Super Clean's labour price variance was $5,845 favourable, but the labour efficiency variance was $2,870 unfavourable. When Anderson presents his findings to Renton, the latter is furious. "Do you mean to tell me that my employees wasted $2,870 worth of time last month? I've had enough. They had better shape up, or else!" Anderson tries to calm him down, saying that in this case the efficiency variance doesn't necessarily mean that employees were wasting time. Anderson tells him that he is going to perform a more detailed analysis and will get back to him with more information Print Done soon. Each vallance as entrer levourere von Navourable to enter an Print Done Yield Variance