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b. In addition to the special order overtime, employees worked overtime to catch up on production. Deduct the overtime hours from the special order
b. In addition to the special order overtime, employees worked overtime to catch up on production. Deduct the overtime hours from the special order from the total overtime hours and calculate the overtime premium paid, in total, to catch up after the closure. Deduct this from the unexplained labor variance calculated in question 7 part a to determine the remaining amount of the unexplained labor variance. c. Using the information at the bottom of Exhibit 3, calculate the amount of pay employees received during the plant closure. Deduct this amount from the unexplained variance from question 7 part b to determine the remaining unexplained labor variance. Should this remaining variance be investigated? Explain.
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