Ben Schmidt, the manager of Hanover Bridge Construction Company, Germany, uses standards to evaluate the performance of

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Ben Schmidt, the manager of Hanover Bridge Construction Company, Germany, uses standards to evaluate the performance of labor. Due to a recent fire breakout in its office, a considerable number of records have been lost, and Ben only has partial data for June, 2020. He knows that the total direct labor flexible-budget variance was €3,286 favorable. Moreover, a recent pay raise caused an unfavorable labor price variance for June of €2,314. The actual hours of input were 3,560 and the standard labor price was €20 per hour. 

1. Find the actual labor rate per hour.

2. Determine the standard hours allowed for the output achieved.

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Related Book For  book-img-for-question

Introduction To Management Accounting

ISBN: 9781292412566

17th Edition, Global Edition

Authors: Charles Horngren, Gary L Sundem, Dave Burgstahler

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