The Following Labour Standards Have Been Established for a Particular

question 137

Essay

The following labour standards have been established for a particular product:

$\begin{array}{l}\begin{array}{lll}\text {Standard labour hours per unit of output }\\\text {Standard labour rate}\\\end{array}\begin{array}{lll}\text {2.8 hours}\\\text {\$ 11.50 per hour}\\\end{array}\end{array}$

The following data pertain to operations concerning the product for the last month:

$\begin{array} { l r } \text { Actual hours worked } & 6,900 \text { hours } \\\text { Actual total labour cost } & \$ 80,385 \\\text { Actual output } & 2,300 \text { units }\end{array}$

Required:

a) What was the labour rate variance for the month?
b) What was the labour efficiency variance for the month?

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Definitions:

Formal Proposal

A detailed and structured plan or suggestion, typically presented in writing, aiming to convince others of a particular course of action.

Crowdfunding

Raising small amounts of money from a large number of people, typically via the Internet, to finance a new business venture.

Worldwide Recognition

is the state of being known, respected, or acknowledged on a global scale.

Getting Funded

The process by which a business secures financial investment to start, operate, or expand its operations.