During March 2020, Pranav Tool & Die worked on four jobs. A review of direct labor costs reveals the following summary data.

Analysis reveals that Job A257 was a repeat job. Job A258 was a rush order that required overtime work at premium rates of pay. Job A259 required a more experienced replacement worker on one shift. Work on Job A260 was done for one day by a new trainee when a regular worker was absent.

Instructions

Prepare a report for the plant supervisor on direct labor cost variances for March. The report should have columns for (1) Job No., (2) Actual Hours, (3) Standard Hours, (4) Quantity Variance, (5) Actual Rate, (6) Standard Rate, (7) Price Variance, and (8) Explanation.

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Actual Standard Total Job Number Hours Hours Costs Costs Variance £ 80 F A257 221 £4,420 9,450 225 £4,500 8,600 A258 450 430 850 U 300 6,000 180 U A259 6,180 300 110 2,088 2,200 A260 116 112 F Total variance £838 U