A company's direct labor standards for a given operation and the actual results for the current period are provided below:
Standard rates:
Level One: $20 per hour
Level Two: $15 per hour
Time to produce one unit:
Two (2)Level One workers at 15-minutes each
Three (3)Level Two workers at 10 minutes each
Actual Results:
Units produced: 10,000
Labor used:
4,000 hours of Level One workers at $25 per hour
6,800 hours of Level Two workers at $15 per hour
Required:
(Be sure to indicate whether the variance is favorable or unfavorable. )
a.Compute the labor price (rate)variances for each worker level.b.Compute the labor efficiency variances for each worker level.c.Compute the labor mix variances for each worker level.d.Compute the labor yield variances for each worker level.
Correct Answer:
Verified
b.L1: $20,000 F;L2...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q102: Virginia Enterprises produces two products,Standard and Deluxe.Actual
Q103: The next year's budget for Temper,Inc.
Q104: Tallon & Associates is a consulting
Q105: Porcini Enterprises produces two products,AR and QT.Actual
Q106: A company's direct labor standards for a
Q108: A company's direct labor standards for a
Q109: Rudy Corporation makes automotive engines.For the most
Q110: Barrymore Corporation,which makes landing gears,has provided
Q111: Vegas Manufacturing uses a standard cost
Q112: A chemical company in the Midwest produces
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents