Answer:
See explanation below
Explanation:
Given
-----------Actual ------------ Standard
Job Number -- Hours-- Costs-- Hours --Costs --Total Variance
A257 -- 220 -- $4,400 -- 225 --$4,500 --$100 Favourable
A258 -- 450 -- 9,450 -- 430 -- 8,600 -- 850 Unfavourable
A259 -- 240 -- 4,860 -- 240 -- 4,800 -- 60 Unfavourable
A260 -- 115 -- 2,070 -- 110 -- 2,200 -- 130 Favourable
Total variance $680 Unfavourable
To solve this, well need to calculate the actual labor rate per hour for all four jobs, and standard labor rate per hour which will be same for all jobs.
This is calculated as follows; Rate = Hours ÷ Costs
The table becomes
-----------Actual ------------ Standard
Job Number -- Hours -- Costs -- Rate -- Hours --Costs --- Rate ---Total Variance
A257 -------------- 220 -- $4,400 -- --20-------225 --$4,500 ----20-----$100 Favourable
A258 -- ------------450 -- 9,450 -------21-------- 430 -- 8,600 -----20-- 850 Unfavourable
A259 -------------- 240 -- 4,860 -----20.25------- 240 -- 4,800 ----20--- 60 Unfavourable
A260 -------------- 115 ---- 2,070 --------18------ 110 ------ 2,200 -----20----- 130 Favourable
Total variance $680 Unfavourable
The Direct Labor Variance Report for the Month Ended March 31, 2017, is prepared below
GARNER TOOL & DIE COMPANY
Direct Labor Variance Report
For the Month Ended March 31, 2017
Job NO: A257
Actual Hours(A): $220
Standard Hours(B) : $225
Standard Rate(C ): $20
Quantity Variance[( A - B)*C] : ($100)
Description; favourable
Actual Rate(D): $20
Standard Rate(C ): $20
Actual Hours(A): $220
Price Variance[(D - C) *A]: $0
Description; none
Total variance: Price Variance + Quantity Variance = ($100)
Description: favorable
Job NO: A258
Actual Hours(A): $450
Standard Hours(B) : $430
Standard Rate(C ): $20
Quantity Variance[( A - B)*C] : $180
Description; unfavourable
Actual Rate(D): $21
Standard Rate(C ): $20
Actual Hours(A): $450
Price Variance[(D - C) *A]: $450
Description; unfavourable
Total variance: Price Variance + Quantity Variance = $630
Description: unfavorable
Job NO: A259
Actual Hours(A): $240
Standard Hours(B) : $240
Standard Rate(C ): $20
Quantity Variance[( A - B)*C] : $0
Description; none
Actual Rate(D): $22.25
Standard Rate(C ): $20
Actual Hours(A): $240
Price Variance[(D - C) *A]: $600
Description; unfavourable
Total variance: Price Variance + Quantity Variance = $600
Description: unfavorable
Job NO: A260
Actual Hours(A): $115
Standard Hours(B) : $110
Standard Rate(C ): $20
Quantity Variance[( A - B)*C] : $100
Description; unfavourable
Actual Rate(D): $18
Standard Rate(C ): $20
Actual Hours(A): $115
Price Variance[(D - C) *A]: ($250)
Description; favourable
Total variance: Price Variance + Quantity Variance = ($150)
Description: favorable
For proper identification, some columns are tagged A,B,C and D.
