INTRO MGRL ACCT LL W CONNECT
8th Edition
ISBN: 9781266376771
Author: BREWER
Publisher: MCG
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Question
Chapter 9, Problem 11E
To determine
Concept Introduction:
Direct labor cost variance is calculated by reducing the actual cost from the total budgeted cost of labor on product. Direct labor cost is of two types which include labor rate variance and labor quantity variance.
Requirement-1:
To Calculate:
Actual labor hours spent during the week.
To determine
Concept Introduction:
Direct labor cost variance is calculated by reducing the actual cost from the total budgeted cost of labor on product. Direct labor cost is of two types which include labor rate variance and labor quantity variance.
Requirement-1:
To Calculate:
Actual labor rate.
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Check out a sample textbook solutionStudents have asked these similar questions
Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The standard labor cost for a
motor tune-up is given below:
Motor tune-up
Standard
Hours
2.50
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls
that 54 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:
Labor rate variance.
Labor spending variance
Standard Rate Standard Cost
$72.50
$29.00
1. Actual labor hours
2. Actual hourly rate
$ 120 F
$ 170 U
Required:
1. Determine the number of actual labor-hours spent on tune-ups during the week.
2. Determine the actual hourly pay rate for tune-ups last week. (Round your answer to 2 decimal places.)
hours
per hour
The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard
labor cost for a motor tune-up is given below:
Motor tune-up
Standard
Hours
2.50
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls
that 60 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:
Labor rate variance
Labor spending variance
Standard Rate Standard Cost
$ 35.00
$ 87.50
1. Actual labor hours
2. Actual hourly rate
$ 50 F
$ 55 U
Required:
1. Determine the number of actual labor-hours spent on tune-ups during the week.
2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.)
hours
per hour
The Smart Garage Company uses standards to control the labour time and labour cost in the shop. The standard labour cost for a
motor tune-up follows:
Job
Motor tune-up
Standard
Hours
3
Labour rate variance
Total labour variance
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls
that 33 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:
Actual labour-hours
$ 98 F
104 U
Standard
Rate
$6
Standard
Cost
$18
Required:
1. Determine the number of actual labour-hours spent on tune-ups during the week. (Round your answer to the nearest whole
number.)
hours
2. Determine the actual hourly rate of pay for tune-ups last week.
(Hint. A useful way to proceed would be to work from known to unknown data either by using the variance formulas or by using the
columnar format shown in Exhibit 11-5.) (Round intermediate calculations to the nearest whole number and…
Chapter 9 Solutions
INTRO MGRL ACCT LL W CONNECT
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