Question
Tax Services prepares tax returns for senior citizens. The standard in terms of (direct labor) time spent on each return is 4 hours. The direct
Tax Services prepares tax returns for senior citizens. The standard in terms of (direct labor) time spent on each return is 4 hours. The direct labor standard wage rate at the firm is
$15.00 per hour. Last month, 3,170 direct labor hours were used to prepare 800tax returns. Total wages were $49,135.
1. | What is the actual (direct labor) wage rate per hour paid last month? |
2. | What is the direct labor rate variance? |
3. | What is the direct labor efficiency variance? |
4. | How might the direct labor rate variance for the firm last month be causing the direct labor efficiency variance? |
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