You own "Portrait Solutions" ( a portrait studio) where your employees take customer family portraits.

A standard family portrait should take your employees 3/4 of an hour (45 minutes) to do. The standard rate of pay (to the employees) per hour is $12. Last week your employees worked 75 hours. See below for your actual rate of pay per hour. In that time, they actually completed 80 portraits.

$14.15

A) What was the week's labor rate variance? (can round to nearest whole $ but must show "F: or "U") And show at least some calculations.

B) What was the week's labor efficiencyvariance? (can round to nearest whole $ but must show "F: or "U") And show at least some calculations.

C) (2 pts) What is a plausible cause for your labor efficiency variance? And as a manager, what would be done about it (the standards were appropriately set)?

Answer rating: 100% (QA)

A To calculate the labor rate variance we first need to determine the standard labor cost and the ac... View the full answer