Nodalos Company has a maintenance shop where all kinds of trucks repairs are performed. Through the years, various labor standards have been developed to judge performance. However, during a March strike, some labor records vanished. The actual hours of input were 1,000. The direct labor variance was P 1,700, favorable. The standard labor rate was P14 per hour; however, a recent labor shortage had necessitated using higher paid labor workers for some jobs and had produced a labor rate variance for March of P400, unfavorable.
Nodalos Company has a maintenance shop where all kinds of trucks repairs are performed. Through the years, various labor standards have been developed to judge performance. However, during a March strike, some labor records vanished. The actual hours of input were 1,000. The direct labor variance was P 1,700, favorable. The standard labor rate was P14 per hour; however, a recent labor shortage had necessitated using higher paid labor workers for some jobs and had produced a labor rate variance for March of P400, unfavorable.
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...
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