Henninger's Nursery Sells a Variety of Plants Required: Compute Each of the Following Variances

question 52

Essay

Henninger's Nursery sells a variety of plants.Henninger sells most of its plants to local landscapers in the community.These plants come in 'flats' containing 12 plants each.In May of the current year,Henninger had expected to sell 900 flats of petunias but produced and sold 940 flats instead.The company expects each flat to require 25 minutes of labour at a cost of $.15 per minute.In addition,variable overhead is applied at a rate of $.05 per minute.
Actual costs incurred during May for the production and sale of 940 flats was as follows:
$\begin{array}{ll} \text { Direct labour} & \text { \$ 3416 (24 400 minutes at \$ .14 per minute)}\\ \text { Variable overhead.} &1200\\\end{array}$

Required: Compute each of the following variances.Indicate whether the variance is favourable (F)or unfavourable (U).
A. Direct labour rate variance
B. Direct labour efficiency variance
C. Variable overhead spending variance
D. Variable overhead efficiency variance

---

Definitions:

360-degree Feedback

A feedback process where employees receive confidential, anonymous feedback from the people who work around them, including peers, managers, and direct reports.

Performance Appraisal

Performance appraisal is a systematic evaluation process by which an employee's job performance is assessed, typically involving an analysis of various aspects of work behavior and outcomes, aimed at informing decisions related to promotions, pay, and development.

Employee-manager Process Review

An assessment or evaluation of the interactions and procedures between employees and their managers, aimed at enhancing efficiency and effectiveness.

Employer Branding

The process of promoting a company or an organization as the employer of choice to a desired target group, one which a company needs and wants to recruit and retain.