Meeds Company Uses the Following Rule to Determine Whether Labour

question 84

Essay

Meeds Company uses the following rule to determine whether labour efficiency variances should be investigated:
A labour efficiency variance will be investigated when the variance is greater than either $100 or 10% of the standard labour cost.
During March,the company used 525 direct labour hours at a rate of $16 per hour.Its standard rate is 500 direct labour hours at a rate of $15.50 per hour. A. Determine the company's labour efficiency variance and whether it is favourable or unfavourable.
B. Should the variance be investigated?

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Definitions:

Estate Systems

A social hierarchy system where land and power are divided among lords and peasants, often inherited and fixed.

Agricultural Societies

Societies primarily engaged in farming and livestock cultivation as their main source of livelihood and economic activity.

Stratification

The hierarchical arrangement of individuals or groups based on wealth, power, and social status.

Life Chances

The opportunities each individual has to improve their quality of life and realize their life goals, influenced by social and economic factors.