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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
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. *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, p. 70. Required: 1-a. Which of the following amounts were used to calculate January's standard direct-labor hours? 1-b. Which of the following amounts were used to calculate January's direct-labor efficiency variance? 2. Calculate the following amounts. a. The standard direct-labor cost for each of the 10 months. b. For each month, 20 percent of the standard direct-labor cost. 3. Suppose management investigates all variances in excess of 20 percent of standard cost. Which months contain a variance that would be investigated? Which of the following amounts were used to calculate January's standard direct-labor hours? (Select "Yes" if the listed amount was used to calculate January's standard direct-labor hours, and "No" if it was not.) Which of the following amounts were used to calculate January's direct-labor efficiency variance? (Select "Yes" if the listed amount was used to calculate January's standard direct-labor efficiency variance, and "No" if it was not.) Calculate the standard direct-labor cost and 20 percent of the standard direct-labor cost for each of the 10 months. Suppose management investigates all variances in excess of 20 percent of standard cost. Which months contain a variance that would be investigated? (Select "Yes" if the listed month contains variance that would be investigated, and "No" if it is not. Round your final answers to the nearest whole dollar amount.)
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