Question
The following data pertain to Colgate Palmolive's liquid filling line during the first 10 months of a particular year. The standard ratio of direct-labor hours
The following data pertain to Colgate Palmolive's liquid filling line during the first 10 months of a particular year. The standard ratio of direct-labor hours to machine hours is 4:1. The standard direct-labor rate is $15.08. |
Colgate Palmolive: Direct-Labor Efficiency Variance Data* | |||||||||||||||
Units Produced | Machine Hours | Standard Direct-Labor Hours | Actual Direct-Labor Hours | Direct-Labor Efficiency Variance | |||||||||||
January | 50,478 | 165.5 | 662.00 | 374.00 | $ | 4,343 | |||||||||
February | 31,943 | 100.3 | 401.20 | 214.00 | 2,823 | ||||||||||
March | 185,179 | 552.0 | 2,208.00 | 1,068.00 | 17,191 | ||||||||||
April | 212,274 | 713.8 | 2,855.20 | 1,495.75 | 20,501 | ||||||||||
May | 48,390 | 160.0 | 640.00 | 364.00 | 4,162 | ||||||||||
June | 82,436 | 232.0 | 928.00 | 536.50 | 5,904 | ||||||||||
July | 36,208 | 104.0 | 416.00 | 283.00 | 2,006 | ||||||||||
August | 33,483 | 96.0 | 384.00 | 317.50 | 1,003 | ||||||||||
September | 31,560 | 96.0 | 384.00 | 328.50 | 837 | ||||||||||
October | 28,191 | 72.0 | 288.00 | 158.00 | 1,960 | ||||||||||
|
*Source of data: Alan S. Levitan and Sidney J. Baxendale, "Analyzing the Labor Efficiency Variance to Signal Process Engineering Problems," Journal of Cost Management 6, no. 2 (Summer 1992), p. 70. |
Calculate the following amounts. |
a. | The standard direct-labor cost for each of the 10 months. (Round intermediate calculation to 2 decimal places and final answers to nearest whole dollar amount.) |
Standard Direct-Labor Cost | |
January | |
February | |
March | |
April | |
May | |
June | |
July | |
August | |
September | |
October |
b)
20% of the standard direct-labor cost | |
January | |
Feb | |
March | |
April | |
May | |
June | |
July | |
August | |
September | |
October |
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