Answered

Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Four Seasons Industries has established direct labor performance standards for its maintenance and repair shop. However, some of the labor records were destroyed during a recent fire. The actual hours worked during August were 2,750, and the total direct labor budget variance was $1,430 unfavorable. The standard labor rate was $17.60 per hour, but recent resignations allowed the firm to hire lower-paid replacement workers for some jobs, and this produced a favorable rate variance of $3,850 for August.

Required:
a. Calculate the actual direct labor rate paid per hour during August.
b. Calculate the dollar amount of the direct labor efficiency variance for August.
c. Calculate the standard direct labor hours allowed for the actual level of activity during August.

Sagot :

Tundexi

Answer:

a. (AR-SR)* Actual hours = Labour rate variance  

Actual rate = (-3,850/2,750) + $17.60

Actual rate = -$1.4 + $17.60

Actual rate = $16.20

b. Direct labour efficiency variance for August = Total direct labour budget variance - Direct labour rate variance

= 1,430 - (-$3,850)

= $5280 Unfavourable

c. Direct Labour efficiency variance = (AH-SH)*SR

5280 = (2,750 - SH) * 17.60

(2,750 - Standard hours) = 5280/17.60

(2,750 - Standard hours) = 300

Standard hours = 2,750 - 300

Standard hours = 2,450

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.