Chapter 9 Evaluating Variances from Standard Costs MAD 9-4 Analyze Maywood City Police Department's labor time variance Obj. 6 Maywood City Police uses variance analysis to monitor police staffing. The following table iden- tifies three common police activities, the standard time to perform each activity, and their actual frequency to establish the expected cost to serve these activities. Actual Activities for Year Standard Hours Total Employee Hours Police Activity per Activity Theft 0.60 7,000 4,200 18,000 27,000 1.50 Arrest pat 9,000 2,700 0.30 Patrol activities 33,900 hour. The police are paid $25 per The actual amount of hours per activity for the year were as follows: OV Actual Hours per Activity Police Activity 0.75 Theft 2.00 Arrest 0.40 Patrol activities a. Determine the total budgeted cost to perform the three police activities. b. Determine the total actual cost to perform the three police activities. c. Determine the direct labor time variance. 0 2 What does the time variance suggest? d. nolzal
Chapter 9 Evaluating Variances from Standard Costs MAD 9-4 Analyze Maywood City Police Department's labor time variance Obj. 6 Maywood City Police uses variance analysis to monitor police staffing. The following table iden- tifies three common police activities, the standard time to perform each activity, and their actual frequency to establish the expected cost to serve these activities. Actual Activities for Year Standard Hours Total Employee Hours Police Activity per Activity Theft 0.60 7,000 4,200 18,000 27,000 1.50 Arrest pat 9,000 2,700 0.30 Patrol activities 33,900 hour. The police are paid $25 per The actual amount of hours per activity for the year were as follows: OV Actual Hours per Activity Police Activity 0.75 Theft 2.00 Arrest 0.40 Patrol activities a. Determine the total budgeted cost to perform the three police activities. b. Determine the total actual cost to perform the three police activities. c. Determine the direct labor time variance. 0 2 What does the time variance suggest? d. nolzal
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter22: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3ADM: Direct labor time variance Maywood City Police uses variance analysis to monitor police staffing....
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Question
a.) Determine the total budgeted cost to perform the three police activities.
b.) Determine the total actual cost to perform the three police activities.
c.) Determine the direct labor time variance.
d.) what does the time variance suggest?
Transcribed Image Text:Chapter 9 Evaluating Variances from Standard Costs
MAD 9-4
Analyze Maywood City Police Department's labor time variance
Obj. 6
Maywood City Police uses variance analysis to monitor police staffing. The following table iden-
tifies three common police activities, the standard time to perform each activity, and their actual
frequency to establish the expected cost to serve these activities.
Actual Activities
for Year
Standard Hours
Total Employee
Hours
Police Activity
per Activity
Theft
0.60
7,000
4,200
18,000
27,000
1.50
Arrest
pat
9,000
2,700
0.30
Patrol activities
33,900
hour.
The police are paid $25 per
The actual amount of hours per activity for the year were as follows:
OV
Actual Hours per Activity
Police Activity
0.75
Theft
2.00
Arrest
0.40
Patrol activities
a. Determine the total budgeted cost to perform the three police activities.
b. Determine the total actual cost to perform the three police activities.
c. Determine the direct labor time variance.
0 2
What does the time variance suggest?
d.
nolzal
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