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Russell and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax
Russell and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax return. Russell expected each Class 2 return to require 4.1 hours of labor at a cost of $47 per hour. The firm actually completed 700 Class 2 returns. Actual labor hours averaged 3.7 hours per return and actual labor cost amounted to $56 per hour.
Required
- Determine the total labor variance and indicate whether it is favorable (F) or unfavorable (U).
- Determine the labor price variance and indicate whether it is favorable (F) or unfavorable (U).
- Determine the labor usage variance and indicate whether it is favorable (F) or unfavorable (U).
Note: For all requirements, do not round intermediate calculations and select "None" if there is no effect (i.e., zero variance).
total labor variance | ||
total labor price variance | ||
total labor usage variance |
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