rate / efficiency variance problems

Anonymous
timer Asked: Mar 16th, 2016

Question description

Problem 1-Budget Analysis
               
Standard cost and price variance analysis          
               
A)  October data:              
               
Actual hours: 16,250 hours            
Standard hours: 5,600 units were budgeted at 3 hours per unit        
Actual labor costs: $247,000            
Standard labor rate: $15.00 per hour            
               
Calculate the labor rate and efficiency variances as well as the overall labor variance for October.        
You must show the calculations to receive credit.            
               
Rate variance= X express in terms    
               
  X express in numbers    
               
             
               
Efficiency variance= X express in terms    
               
  X express in numbers    
               
             
               
Rate variance   you must indicate if each one is favorable or unfavorable  
Efficiency variance   then you must indicate if the overall if favorable or unfavorable
Total variance            
               
B) November data:              
               
Actual hours: 22,000 hours            
Standard hours: 6,000 units were budgeted at 3 hours per unit        
Actual labor costs: $335,000            
Standard labor rate: $15.00 per hour            
               
Rate variance= X express in terms    
               
  X express in numbers    
               
             
               
Efficiency variance= X express in terms    
               
  X express in numbers    
               
             
               
Rate variance   you must indicate if each one is favorable or unfavorable  
Efficiency variance   then you must indicate if the overall if favorable or unfavorable
Total variance            
               

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