Scribd
Upload
175 views2 pages

Acccob3 HW7

The company prepared 4000 meals and had a standard labor time of 0.25 hours per meal, allowing for 1000 total standard labor hours. At a standard labor cost of $19.75 per hour, the total standard labor cost was $19,750. The actual labor cost incurred was $19,200, resulting in a $550 favorable variance as the company spent less than allowed. However, the $20 actual labor rate paid was higher than the $19.75 standard rate, creating an unfavorable $240 rate variance. Additionally, with 960 actual hours worked compared to the 1000 standard hours allowed, there was a $790 favorable efficiency variance.

Uploaded by

neovaldez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
175 views2 pages

Acccob3 HW7

The company prepared 4000 meals and had a standard labor time of 0.25 hours per meal, allowing for 1000 total standard labor hours. At a standard labor cost of $19.75 per hour, the total standard labor cost was $19,750. The actual labor cost incurred was $19,200, resulting in a $550 favorable variance as the company spent less than allowed. However, the $20 actual labor rate paid was higher than the $19.75 standard rate, creating an unfavorable $240 rate variance. Additionally, with 960 actual hours worked compared to the 1000 standard hours allowed, there was a $790 favorable efficiency variance.

Uploaded by

neovaldez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 2

1

Number of Meals Prepared 4000


Standard Direct Labor Hours Per Meal 0.25
Total Direct Labor Hours Allowed 1000
2
Total Direct Labor Hours Allowed 1000
Standard Direct Labor Cost Per Hour 19.75
Total Standared Direct Labor Cost 19750
3
Actual Cost Incurred 19200
Total Standard Direct Labor Cost 19750
Labor Spending Varience 550 Favorable because the company spent less than the

4
Labor Rate Varience Actual Hours(Actual Rate-Standard Rate)
Actual Hours 960
Actual Rate 20
Standard Rate 19.75
Labor Rate Varience 240 Unfavorable because the rate the company paid is m

Labor Efficiency Varience Standard Rate(Actual Hours-Standard Hours)


Actual Rate 19.75
Actual Hours 960
Standard hours 1000
Labor Efficency Varience 790 Favorable because the company used less hours tha
he company spent less than the standard

e-Standard Rate)

e the rate the company paid is more than the standard

rs-Standard Hours)

he company used less hours than the standard

You might also like