Analyze the information given and that you calculated and

Reference no: EM13590332

Roberto Ventura operates a commercial painting business in Sacramento, which has a very tight labor market. Much of his work focuses on newly constructed apartments and townhouses.

The following data relate to crew no. 5 for a recently concluded period when 85 apartment units were painted:

· Three new employees were assigned to crew no. 5. Wages averaged $18.80 per hour for each employee; the crew took 2,550 hours to complete the work.

· Based on his knowledge of the operation, articles in trade journals, and conversations with other painters, Ventura established the following standards:
Typical hourly wage rate of crew personnel: $15
Anticipated crew time for each unit: 34 hours

· The paint quantity variance was $6,070F.

· The operation did not go as smoothly as planned, with customer complaints and problems being much higher than expected.

Required:
A. Compute Ventura's direct-labor variances.
B. Is the direct-labor rate variance consistent with what you might expect in a tight labor market? Explain.
C. Analyze the information given and that you calculated, and determine what likely happened that would give rise to customer complaints.

Reference no: EM13590332

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