Office Pro, Inc., does software development. One important activity in software development is writing software code. The
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1. If the team generated 6,000 lines of code according to the original plan, what would have been the labor time variance?
2. What was the actual labor time variance as a result of generating 7,000 lines of code?
3. What was the labor rate variance as a result of the bonus?
4. The manager is trying to determine if a better decision would have been to hire a temporary programmer to meet the higher programming demand in the first week of May, rather than paying out the bonus. If another employee was hired from the employment firm, what would have been the labor time variance in the first week?
5. Which decision is better, paying the bonus or hiring another programmer?
6. Are there any performance-related issues that the labor time and rate variances fail to consider? Explain.
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Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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