Answer:
1.6000 Hours
2. 102,000
3. $ 350 Unfav
4.$ 4250 Fav
5 a). $ 3.80 per hour
b) . $ 1000 Fav
Explanation:
1:
Std hours allowed per unit: 18 min
Actual output: 20000 units
Std hours allowed for actuaal output (20000*18/60)= 6000 Hours
2:
Std labour hourrs allowed =6000 hours
Std rate per hour: $ 17
Std labor cost allowed: (6000 hours @17)=102,000
3:
Labour Spending Variancce: Std hours*Std rate - Actual hours*Actual rate
6000 *17 - 102350 = $ 350 Unfav
4:
Actual labour rate per hour (102350/5750): $ 17.80 per hour
Labour Rate variance: Actual hours (Std rate-Actual rate)
5750 hrs (17.00-17.80)= $ 4600 Unfav
Labour efficiency variance: Std rate (Std hours-Actual hours)
17 (6000-5750)= $ 4250 Fav
5:
Std Variable rate per hour: $ 4 per hour
Actual rate per hour (21850/5750)= $ 3.80 per hour
Variable rate variance: Actual hours (Std OH rate-Actual OH rate)
5750 (4.00-3.80)= $ 1150 Fav
Variable OH effience variance: Std rate (Std hours-Actual hours)
4.00 (6000-5750)= $ 1000 Fav
