Following is a partially completed performance report for a recent week for direct labor in the binding
Question:
The original budget is based on the expectation that 3,000 books would be bound: the standard is 20 books per hour at a pay rate of $12 per hour. During the week, 2,860 books were actually bound. Employees worked 160 hours at an actual total cost of $1,888?
Required:
a. Calculate the fixed budget amount against which actual performance should be evaluated and then calculate the budget variance.
b. Calculate the direct labor efficiency variance in terms of hours.
c. Calculate the direct labor rate variance?
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Related Book For
Accounting What the Numbers Mean
ISBN: 978-1259535314
11th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
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