A Company's Direct Labor Standards for a Given Operation and the Actual

question 32

Essay

A company's direct labor standards for a given operation and the actual results for the current period are provided below:
Standard rates:
Advanced: $18 per hour
Trained: $15 per hour
Novice: $10 per hour
$\begin{array}{|l|r|}\hline \text { Time to produce one unit: } \\\begin{array}{l|r}\hline\text { One (1) Advanced worker at } 30 \text { minutes each }= & 30 \text { minutes/unit } \\\hline \text { Three (3) Trained workers at } 20 \text { minutes each }= & 60 \text { minutes/unit } \\\hline \text { Two (2) Novice workers at } 15 \text { minutes each }= & 30 \text { minutes/unit } \\\hline & 120 \text { minutes/unit }\\\hline\end{array}\end{array}$

Actual Results:
Units produced: 4,000
Labor used:
2,200 hours of Advanced workers
4,300 hours of Trained workers
1,900 hours of Novice workers
Required:
(Be sure to indicate whether the variance is favorable or unfavorable.)
a. Compute the labor efficiency variances for each worker level.
b. Compute the labor mix variances for each worker level.
c. Compute the labor yield variances for each worker level.

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Definitions:

Issues Management

The proactive process of identifying, evaluating, and responding to potential issues or opportunities that could impact an organization, aiming to prevent them from escalating into crises.

Emerging Trends

New patterns or developments in behavior, technology, culture, or markets that have the potential to significantly impact society or industry.

Digital Factor

Elements or aspects related to digital technology that influence or determine outcomes in various contexts, such as business, communication, or consumer behavior.

Precrisis Stage

The phase prior to a crisis where signs and risks can be identified, allowing organizations to potentially prevent the crisis or reduce its impact through early intervention.