The director of cost management for Portland Instrument Corporation compares each month's actual results with a monthly plan. TheThe director of cost management for Portland Instrument Corporation compares each month's actual results with a monthly plan. The

standard direct$-$labor rates for the year just ended and the standard hours allowed, given the actual output in April, are shown in the

following schedule.

A new union contract negotiated in March resulted in actual wage rates that differed from the standard rates. The actual direct$-$labor

hours worked and the actual direct$-$labor rates per hour experienced for the month of April were as follows:

Required:

$1-$a$.$ Compute the direct$-$labor rate variance for each labor class for the month of April.

$1-$b$.$ Compute the direct$-$labor efficiency variance for each labor class for the month of April.

Which of the following could be considered an advantage of using a standard$-$costing system in which the standard direct$-$labor

rates are not changed during the year to reflect such events as a new labor contract?

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req $1A$

Req $1B$

Compute the direct$-$labor rate variance for each labor class for the month of April.

Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter $"0"$ for no effect

$($i$.$e$.,$ zero variance$).$

standard direct$-$labor rates for the year just ended and the standard hours allowed, given the actual output in April, are shown in the

following schedule.

A new union contract negotiated in March resulted in actual wage rates that differed from the standard rates. The actual direct$-$labor

hours worked and the actual direct$-$labor rates per hour experienced for the month of April were as follows:

Required:

$1-$a$.$ Compute the direct$-$labor rate variance for each labor class for the month of April.

$1-$b$.$ Compute the direct$-$labor efficiency variance for each labor class for the month of April.

Which of the following could be considered an advantage of using a standard$-$costing system in which the standard direct$-$labor

rates are not changed during the year to reflect such events as a new labor contract?

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req $1A$

Req $1B$

Compute the direct$-$labor rate variance for each labor class for the month of April.

Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter $"0"$ for no effect

$($i$.$e$.,$ zero variance$).$