Southern Company Established Direct Labor Standards of 0

question 146

Essay

Southern Company established direct labor standards of 0.5 hours per unit at $12 per hour for one of its products.In March,Southern used 12,000 direct labor hours,and the total amount paid to direct labor employees was $143,400.
Required:
Based on this information,
(a)Which variance can you calculate?
(b)What is the dollar amount of the variance?
(c)Is the variance favorable or unfavorable?
(d)Do you consider the variance to be sufficiently material that managers should investigate to discover the cause of the variance?

---

Definitions:

Referent Power

A form of personal power that stems from being admired, respected, or identified with, allowing for influence over others due to this admiration or identification.

Position Power

Position power refers to the authority and influence a person has within an organization based on their role or position.

Monetary Rewards

Monetary rewards are financial incentives given to employees as recognition for their work or achievements, aimed at motivating performance and loyalty.

Desirable Job Assignments

Tasks or projects that are attractive to employees, often offering learning opportunities, recognition, and career advancement.