Bee Company is concerned about the high wage rate paid to its semi skilled employees and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bee Company is concerned about the high wage rate paid to its semi skilled employees and as a result it has increased the number of assistants who have a lower bargaining power compared to - the semi-skilled employees. The following standards have been provided, with the results of which will guide the management on further actions; Labour rate per hour; 2 semi-skilled employees @450 3 assistants @240 Total cost Shs. 900 720 1620 i) Average labour rater per hour 1620 = 324 5 ii) Standard labour rate per units of output at 8 units per hour = 1620 = 40.5 5x8 iii) Standard labour rate cost of (40,000) units of: 40,000 x 4 = 1,600,000 iv) Actual input 5450 hours; 1950 hours of semi-skilled employees @ 460 3500 hours of assistant @220 Required: shs. 897,000 770,000 1.667,000 a) i) Compute the labour rate variance and labour efficiency variance, interpret your results (4mks) ii) Split the labour efficiency into labour yield and labour unit variances. Interpret your results. (4mks) iii) Determine the total labour. (2mks) Bee Company is concerned about the high wage rate paid to its semi skilled employees and as a result it has increased the number of assistants who have a lower bargaining power compared to - the semi-skilled employees. The following standards have been provided, with the results of which will guide the management on further actions; Labour rate per hour; 2 semi-skilled employees @450 3 assistants @240 Total cost Shs. 900 720 1620 i) Average labour rater per hour 1620 = 324 5 ii) Standard labour rate per units of output at 8 units per hour = 1620 = 40.5 5x8 iii) Standard labour rate cost of (40,000) units of: 40,000 x 4 = 1,600,000 iv) Actual input 5450 hours; 1950 hours of semi-skilled employees @ 460 3500 hours of assistant @220 Required: shs. 897,000 770,000 1.667,000 a) i) Compute the labour rate variance and labour efficiency variance, interpret your results (4mks) ii) Split the labour efficiency into labour yield and labour unit variances. Interpret your results. (4mks) iii) Determine the total labour. (2mks)
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below a i Labour Rate Variance Actual Rate St... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
Students also viewed these accounting questions
-
Management at Webster Chemical Company is concerned about whether caulking tubes are being properly capped. If a significant proportion of the tubes are not being sealed, Webster is placing its...
-
The Acme Manufacturing Company is concerned about its warehouse needs and how they can be best met. The company produces a line of spare parts for appliances. Due to the combination of production...
-
The board of directors of Abco Company is concerned about the downside risk of a $100 million equity portfolio in its pension plan. The boards consultant has proposed temporarily (for 1 month)...
-
What is the asset-liability time mismatch that all banks face?
-
(a) What is the present value of $20,000 due 8 periods from now, discounted at 8% ? (b) What is the present value of $20,000 to be received at the end of each of 6 periods, discounted at 9%?
-
A player kicks a football at an angle of 37 degrees with the horizontal and with an initial speed of 48 ft/sec. A second player standing at a distance of 100 ft from the first in the direction of the...
-
With reference to the example of the \(2^{3}\) design on page \({ }^{* * *}\), express the total sum of squares as the sum of the contributions from each of the seven treatments plus the error sum of...
-
Eloisa Corporation applies IFRS. Information about Eloisa Corporation's income before income tax of $633,000 for its year ended December 31, 2017 includes the following: 1. CCA reported on the 2017...
-
Which early childhood philosopher is credited with bringing Practical Life into the early childhood classroom?
-
Which statement concerning TQM in services is false a Service quality often depends upon the courtesy of the sales person b Service quality often depends upon how problems are handled c Service...
-
Create public policy solutions to deal with the health issue you have chosen. What can be done by government, Citizens and Health care industry?
-
1. What do you think about the process Ravi's dad describes? Explain 2. What do you think about what makes a good mate? (Based on the discussion Ravi has with the groom when he asks the groom, "how...
-
8) In the equation d = 1.58 (m/s)*t2 - 6.70 (m/s)*t + 0.75 (m), what is the acceleration of the object? What is the velocity of the object at t = 2.2 seconds? When is the velocity of the object zero?
-
1. An introduction identifying the ethical and/or legal issues related to this case (for instance, informed consent, fiduciary requirements, beneficence, patient autonomy, etc), 2. Analysis of the...
-
Explain Briefly ? why profit rates in all competitive industries tend toward the same level. What incentive does this create for entrepreneurs and how does this benefit society as a whole?
-
Consider a large interferometer that uses a lazer with the wavelength of 1 , 1 2 0 . 9 1 nm ( 1 1 2 0 . 9 1 x 1 0 - 9 m ) . What is the frequency of the photons emitted by this beam in hertz? Express...
-
During the year, Botswana Company made an entry to write off a $14,000 uncollectible account. Before this entry was made, the balance in accounts receivable was $585,000 and the balance in the...
-
Which of the following gives the range of y = 4 - 2 -x ? (A) (- , ) (B) (- , 4) (C) [- 4, ) (D) (- , 4] (E) All reals
-
Ag-Coop is a large farm cooperative with a number of agriculture-related manufacturing and service divisions. As a cooperative, it pays no federal income taxes. The company owns a fertilizer plant...
-
TechMasters, Inc., has the following mission statement: To be the leader in innovation and new products for the industrial control instruments market. TechMasterss CFO, who has just returned from an...
-
Carreras Caf is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 40 percent below those served in May, because so many students leave for the...
-
In this chapter, we noted that the Hilbert space of the harmonic oscillator corresponds to all those states that can be accessed from the ground state through action by an anatic function of...
-
We had shown that any state \(|\psiangle\) on the Hilbert space of the harmonic oscillator is described by some analytic function \(f\left(\hat{a}^{\dagger} ight)\) of the raising operator acting on...
-
We happen to find that the ground state of the harmonic oscillator (and the coherent states in general) is a minimum uncertainty state, but can we do the converse? That is, can we directly determine...
Study smarter with the SolutionInn App