The Supervisor of the Cost Department Has Just Conferred with You

question 87

Essay

The supervisor of the cost department has just conferred with you concerning the variance analysis of direct labour for the month just ended.As she talked,you wrote feverishly,but you weren't able to record all the information she gave you before she dashed off muttering something about "another brush fire to put out." Your efforts are shown below:
$$\begin{array} { | l | l | l | } \hline 4,800 \text { hours *\$7.20 } & \text { hours } \$ \$ & \text { hours } \$ \\\hline \hline & & \\\hline \hline & & \\\hline \hline & & \\\hline \hline & & \\\hline \hline & & \\\hline \hline & & \\\hline\end{array}$$
Efficiency variance
$2,250 U
Total variance,$810 U
Required:
a)To redeem yourself,complete the form above,adding numbers and labels.(The usual notations,AH,SH,AR,SR,etc.,may be used where appropriate.)
b)If you know that 18 minutes of labour is standard per unit of production,how many units were produced?

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Definitions:

Economic Benefits

The benefits obtained from the use of goods or services that contribute to an entity's cash flow.

Agricultural Diversity

The variety and variability of plants, animals, and microorganisms used directly or indirectly for food and agriculture, providing multiple options for sustainable agricultural production.

AASB 141

An Australian accounting standard regarding the accounting for agricultural activity, including the recognition and measurement of biological assets and agricultural produce.

IAS 41

An International Accounting Standard that deals with the accounting for agricultural activity, including the transformation of biological assets (living plants and animals) into agricultural produce.