A Company's Direct Labor Standards for a Given Operation and the Actual

question 54

Essay

A company's direct labor standards for a given operation and the actual results for the current period are provided below:
Standard rates:
Level One: $20 per hour
Level Two: $15 per hour
Time to produce one unit:
Two (2)Level One workers at 15-minutes each
Three (3)Level Two workers at 10 minutes each
Actual Results:
Units produced: 10,000
Labor used:
4,000 hours of Level One workers at $25 per hour
6,800 hours of Level Two workers at $15 per hour
Required:
(Be sure to indicate whether the variance is favorable or unfavorable. )
a.Compute the labor price (rate)variances for each worker level.b.Compute the labor efficiency variances for each worker level.c.Compute the labor mix variances for each worker level.d.Compute the labor yield variances for each worker level.

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Definitions:

Inverse Function

A function that reverses the operation of a given function, such that the composition of the two yields the original input.

Function

A framework involving a set of inputs and a roster of potential outputs, with the stipulation that each input is corresponded with only one output.

Composition

The combining of distinct parts or elements to form a whole, especially in mathematics where functions are combined.

Function

A mathematical relationship where each input has a single output, often expressed as f(x).