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Scenario #3 (at the CPA tax preparation firm that you own during busy tax season!) (Labor Variance Exercise) You pay your employees by the hour
Scenario #3 (at the CPA tax preparation firm that you own during busy tax season!) | ||||||
(Labor Variance Exercise) | ||||||
You pay your employees by the hour (of work that they "clock") | ||||||
Last week you paid your employees $1,200 for 80 hours of work | ||||||
45 tax forms got prepared last week. | ||||||
The standard time expected per tax form is 2 hours. The standard rate of pay is $20 | ||||||
per hour. | ||||||
Calculate the labor rate and efficiency variance for last week's output | ||||||
(including whether these variances are | ||||||
favorable or unfavorable) | ||||||
Hint: Set up the 3 columns, AH x AR, AH x SR, SH x SR
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