Warwick Company Has the Following Information Concerning Its Direct Labour

question 170

Essay

Warwick Company has the following information concerning its direct labour: $\begin{array}{ll}\text { Direct Labour: }\\\text { Standard Hours } & 7,500 \\\text { Actual Hours } & 7,350 \\\text { Standard Rate } & \$ 16 \\\text { Actual Rate } & \$ 19\end{array}$ Required:
A. Determine the labour rate variance and whether it is favourable or unfavourable.
B. Determine the labour efficiency variance and whether it is favourable or unfavourable.
C. Provide the journal entry for the labour variances.

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Definitions:

Autism

A neurodevelopmental disorder characterized by difficulties in social interaction and communication, and by restricted or repetitive patterns of thought and behavior.

Behavior Modification

A therapeutic approach that seeks to change potentially self-destructive or unhealthy behaviors through reinforcement and punishment.

Biofeedback

A technique that teaches individuals to control bodily processes that are typically involuntary, through monitoring and feedback from electrodes.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which was developed by B.F. Skinner to study behavior modification.