Answer:
Explanation:
Standard hours per week = 40 hours
Standard rate per hour = $32
Actual rate per hour = $40
Labour rate variance = 40 - 32 = $8 (unfavourable)
Actual cost per week = 40 × 40 = $1600
Standard cost per week = 40 × 32 = $1280
Labour cost variance = actual cost per week - standard cost per week
= 1600 - 1280
= $320 (unfavourable)
Actual codes written in first week = 5650
Standard codes per week = 5 × 25 × 40 = 5000
Actual cost per code = 1600/5660 = $0.2832
Standard cost per code = 1280/5000 = 0.256
Labour efficiency variance = 0.2832 - 0.256 = $0.0272 (unfavourable)
If the team generated 4,650 lines of code according to the original plan:
Code generated = 4650
Number of programmers = 5
Average codes per hour per programmer = 25
Total codes per hour = 25 × 5 = 125
Standard codes per week = 40 × 125 = 5000
Actual time to write 4650 codes = 4650/125 = 37.2 hours
Standard time = 40 hours
Idle time = 40 - 37.2 = 2.8 hours
Labour time variance = 2.8 hours
Cost of idle time = 2.8 × 32 = $89.6 (unfavourable)
