Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Standards for Nonmanufacturing Expenses CodeHead Software Inc. does software development. One important activity in software development is writing software code. The manager of the Word
Standards for Nonmanufacturing Expenses CodeHead Software Inc. does software development. One important activity in software development is writing software code. The manager of the Word Pro Development Team determined that the average software programmer could write 25 lines code in an hour. The plan for the first week in May called for 4,650 lines of code to be written on the WordPro product. The Word Pro Team has five programmers. Each programmer is hired from an employment firm that requires temporary employees to be hired for a minimum of a 40-hour week. Programmers are paid $32.00 per hour. The manager offered a bonus if the team could generate more lines for the week, without overtime. Due to a project emergency, the programmers wrote more code in the first week of May than planned. The actual amount code written in the first week of May was 5,650 lines, without overtime. As a result, the bonus caused the average programmer's hourly rate to increase to $40.00 per hour during the first week in May. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount is zero, enter "0" and choose "Not applicable" from the dropdown. Required: 1. If the team generated 4,650 lines of code according to the original plan, what would have been the labor time variance? Unfavorable 2. What was the actual labor time variance as a result of generating 5,650 lines of code? Favorable 3. What was the labor rate variance as a result of the bonus? Unfavorable 4. The manager is trying determine if a better decision would have been to hire a temporary programmer to meet the higher programming demand in the first week of May, rather than paying out the bonus. If another employee was hired from the employment firm, what would have been the labor time variance in the first week? Unfavorable 5. Which decision is better, paying the bonus or hiring another programmer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started