Flexible budgets and standard costs

Reference no: EM1364064

Computation and interpretation of labor variances

After evaluating Zero Company's manufacturing process, management decided to establish standards of 1.5 hours of direct labor per unit of product and $11 per hour for the labor rate. During October, the company used 3,780 hours of direct labor at $45,360 total cost to produce 2,700 unit of product. In November, the company used 4,480 hours of direct labor at a $47,040 total cost to produce 2,800 units of product.

1. Compute the labor rate variance, the labor efficiency variance, and the total direct labor cost variance for October and for November.

2. Interpret the October direct labor variances.

Reference no: EM1364064

Questions Cloud

List out distinct characteristics of a perfectly competitive : List out the distinct characteristics of a perfectly competitive labor market and compare them to the characteristics of monopsony.

By how much does the carrier lengthen : By how much does the carrier lengthen. what is the magnitude of his average velocity for the 200.

Capitation and fee-for-service models : What is the differences between Capitation and Fee-For-Service models that compensate physician services?

Create a risk management plan : Show some of the inputs to the risk management plan and explain their value in identifying risks

Flexible budgets and standard costs : Compute the labor rate variance, the labor efficiency variance, and the total direct labor cost variance for October and for November.

What is break -even point for upgrades : You have also learned that you can upgrade your CPU to make it 1.4 times as fast for $5,000. Which would you choose to yield the best performance improvemen tfor the least amount of money?

Describe the pros and cons for a venture : Risk management relates to decreasing cost of risk, meaning reducing cost of the actual management of risk. People invest their money, whether it's in bonds or stocks,

Current health care atmosphere : What do you think is the significance of the family as client in the current health care environment, and how can this apply to home tele-health or patient care.

Tree diagrams and normal curves : Tree Diagrams and Normal Curves - Sketch the two specified normal curves on the same set of axes

User Account

All Pages