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Problem 1: Annapolis Company completes job #601 which has a standard of 610 labor hours at a standard rate of $18.35 per hour. The job was completed in 660 hours and the average actual labor rate was $18.10 per hour. What is the labor rate variance? Round and enter as a whole number (no cents).
Problem 2: Annapolis Company completes job #601 which has a standard of 570 labor hours at a standard rate of $18.40 per hour. The job was completed in 520 hours and the average actual labor rate was $17.50 per hour. What is the labor efficiency (quantity) variance? A negative number indicates an favorable variance and a positive number indicates an unfavorable variance.
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Evaluate the Predetermined Overhead Rate
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This individual assignment is based on the TerraCycle Inc.
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A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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