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What is the amount of variance that is attributed to the difference between the budgeted and actual wage rate per hour? Use the following data
What is the amount of variance that is attributed to the difference between the budgeted and actual wage rate per hour? Use the following data to calculate the variances.
Budgeted costs at actual volume would be $25,344 ($21.12 1,200), and the total variance to be explained is $2,536 Unfavorable ($27,880 - $25,344). Be sure to specify whether the variance is favorable or unfavorable.
The following information has been prepared for a home health agency.
| Budget | Actual | |
| Wages Per Hour | $16.00 | $17.00 |
| Fixed Hours | 320 | 320 |
| Variable Hours per (RVU) | 1.0 | 1.1 |
| Relative Value Units | 1,000 | 1,200 |
| Total Labor Hours | 1,320 | 1,640 |
| Labor Costs | $21,120 | $27,880 |
| Cost Per RVU | $21.12 | $23.23 |
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