James Has the Following Information Pertaining to Its Usage of Direct

question 16

Essay

James has the following information pertaining to its usage of direct labor in a recent period: $$\begin{array} { | l | r | } \hline \text { Total direct labor hours worked (AQ) } & 30,000 \\\hline \text { Total units manufactured } & 8,000 \\\hline \text { Actual wage rate per hour (AP) } & \$ 16 \\\hline \text { Standard cost data: } & \\\hline \text { Wage rate per hour (SP) } & \$ 18 \\\hline \text { Standard hours per unit } & 4 \\\hline\end{array}$$ Required:
1.Calculate the labor efficiency variance for the period.
2.Calculate the labor rate variance for the period.
3.Prepare, in proper form, the journal entry to record wage expense for the period, including any associated standard cost variances.

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Definitions:

HR Demand Forecasting

The process of estimating the future human resource requirements of an organization to achieve its goals.

Replacement Demand

The need to fill job positions that become vacant due to retirement, resignation, or dismissal, rather than due to the creation of new jobs.

Forecasting HR Demand

The process of estimating the future human resource needs of an organization, based on its business strategies, projected growth, and external market trends.

Engineers Canada

A national organization that represents the interests of engineering regulatory bodies and standards across Canada.