Meeds Company Uses the Following Rule to Determine Whether Labour

question 47

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.
Required:
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:

Negative Effects

Negative effects are undesirable or harmful outcomes resulting from specific actions, conditions, or circumstances.

Supposed Emotionality

The assumption that certain individuals or groups are inherently more emotional or driven by emotions, often used in gender stereotyping.

Differences Tradition

A perspective emphasizing the unique qualities and values of different cultures, communities, and demographic groups.

Devaluing Strengths

The act of downplaying or underestimating the positive attributes and capabilities of individuals or groups, often due to bias or stereotypes.