Aman is worried about her labor costs. She budgeted that each of her products would take 1.33 hours to complete at a rate of $26 per direct labor hour. This month, Aman’s business has produced 1,850 products. She has paid her workers a total of $55,500 in wages. Additionally, there is a 5% CPP expense that must also be paid (Aman includes this in her budgeting). Aman also gave a $500 bonus to all fourteen of her workers, since they have been working hard through long hours. Prepare a variance analysis model and give her some advice on if she is doing well and, if not, how things can be improved. Discuss all relevant factors, including more information that you may request from Aman and further analysis you would like to do.

Answer rating: 100% (QA)

Answer Direct labor refers to the salaries and wages paid to workers that can be ... View the full answer