Question
The following labor standards have been established for a particular product: Standard labor hours per unit of output 4.1 hours Standard labor rate $17.80 per
| The following labor standards have been established for a particular product: |
| Standard labor hours per unit of output | 4.1 | hours |
| Standard labor rate | $17.80 | per hours |
|
| ||
| The following data pertain to operations concerning the product for the last month: |
| Actual hours worked | 7,700 | hours |
| Actual total labor cost | $137,830 | |
| Actual output | 1,800 | units |
|
| ||
| Required: | |
| a. | What is the labor rate variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) |
| b. | What is the labor efficiency variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) |
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
Sales Audit The Sales Managers Playbook For Getting Control Of The Selling Cycle And Improving Results
Authors: Corey Hutchison
1st Edition
0595421342, 978-0595421343
