Budget Actual Wage Rate per Hour $16.00 $17.00 Fixed Hours 320 320 Variable Hours per Relative...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Budget Actual Wage Rate per Hour $16.00 $17.00 Fixed Hours 320 320 Variable Hours per Relative Value Unit (RVU) 1.0 1.1 Relative Value Units (RVUS) 1,000 1,200 Total Labor Hours 1,320 1,640 Labor Costs $21,120 $27,880 Cost per RVU $21.12 $23.23 Budgeted costs at actual volume would be $25,344 ($21.12 x 1,200), and the total variance to be explained is $2,536 Unfavorable ($27,880 - $25,344). Be sure to specify whether the variance is favorable or unfavorable. What is the amount of variance that is attributed to the difference between the budgeted and actual wage rate per hour? Budget Actual Wage Rate per Hour $16.00 $17.00 Fixed Hours 320 320 Variable Hours per Relative Value Unit (RVU) 1.0 1.1 Relative Value Units (RVUS) 1,000 1,200 Total Labor Hours 1,320 1,640 Labor Costs $21,120 $27,880 Cost per RVU $21.12 $23.23 Budgeted costs at actual volume would be $25,344 ($21.12 x 1,200), and the total variance to be explained is $2,536 Unfavorable ($27,880 - $25,344). Be sure to specify whether the variance is favorable or unfavorable. What is the amount of variance that is attributed to the difference between the budgeted and actual wage rate per hour?
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
In contrast to our analysis in Section 5.4.3, Carlton and Loury (1980) suggest that a Pigouvian tax alone will not lead to a long run social optimum for competitive polluting firms. Using their...
-
Impro Company operates in a state where corporate taxes and workers compensation insurance rates have recently doubled. Impros president has just assigned you the task of preparing an economic...
-
As the volunteer business manager for the New City Band (City Band), you are responsible for preparing the operating budget for the organizations upcoming summer concert season. Each year, City Band...
-
Top management continually emphasizes and supports investments designed to improve the efficiency of the manufacturing process. Such a focus most likely reflects the pursuit of which type of...
-
Cost-plus target return on investment pricing. John Beck is the managing partner of a business that has just finished building a 60-room motel. Beck anticipates that he will rent these rooms for...
-
A sample of 18 items provides a sample standard deviation of 4.9 . Test the following hypotheses using a=0.05. What is your conclusion? Use both the p-value approach and the critical value approach....
-
For each decade, briefly explore and discuss the nature of the economic challenges and problems that plagued that decade. What was the role of profit as an incentive in the US market economy? Explain...
-
You own a catering business in the city of Lincoln, Ne, "Out of this World Gyros". Your specialty are gyros as well as other authentic Greek dishes. You have been asked to cater an event for Nebraska...
-
What is the present value of an annuity of 7 annual payments of $1,000 if the first cash flow occurs in one year's time? The rate is 9% p.a. Calculate your answer to the nearest dollar. Do not use...
-
there are limitations to the standard-setting process. Some common obstacles are cost versus benefits and the materiality of the issue.Standard setters need to consider the cost associated with...
-
Two different atoms have six protons each and the same mass. However, one has a negative charge while the other has a positive charge. Describe what each atomic structure could be, listing the...
-
How does an IPO affect the shares of the existing shareholders?
-
Suppose gender and which place a person is born are both fully random and cannot be manipulated. For simplicity, suppose there are only two genders and we only consider people who are born in the...
-
A sprinkler head malfunctions at midfield in an NFL football field. The puddle of water forms a circular pattern around the sprinkler head with a radius in yards that grows as a function of time, in...
-
The constants obtained by Shende and Sharma (1974) for use in Eq. (16-72) are given in the following table. Assume their experiments with \(\mathrm{NaOH}-\mathrm{SO}_{2}\) were done at \(1.0...
-
We are separating methanol and water in a staged distillation column at total reflux to determine Murphree efficiency. Pressure is \(101.3 \mathrm{kPa}\). The column has a 2.0 -in. head of liquid on...
-
The large-scale column in Example 16-4 is fed a saturated liquid with mole fraction \(\mathrm{z}=0.5\), and separation is essentially complete ( \(\mathrm{x}_{\text {dist }} \sim 1.0\) and...
Study smarter with the SolutionInn App