a. Determine the total budgeted cost to perform the three b. Determine the total actual cost to perform the three police activities. C. Determine the direct labor time variance. d. What does the time variance suggest?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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9 Evaluating Variances from Standard Costs
Obj. 6
MAD 9-4 Analyze Maywood City Police Department's labor time variance
frequency to establish the expected cost to serve these activities.
Actual Activities Total Employee
for Year
Standard Hours
Hours
Police Activity
per Activity
7,000
4,200
Theft
0.60
18,000
27,000
Arrest
1.50
9,000
2,700
Patrol activities
0.30
33,900
The police are paid $25 per
hour.
The actual amount of hours per activity for the year were as follows:
Police Activity
Actual Hours per Activity
Theft
0.75
Arrest
2.00
Patrol activities
0.40
a. Determine the total budgeted cost to perform the three police activities.
b. Determine the total actual cost to perform the three police activities.
C. Determine the direct labor time variance.
d.
What does the time variance suggest?
Transcribed Image Text:9 Evaluating Variances from Standard Costs Obj. 6 MAD 9-4 Analyze Maywood City Police Department's labor time variance frequency to establish the expected cost to serve these activities. Actual Activities Total Employee for Year Standard Hours Hours Police Activity per Activity 7,000 4,200 Theft 0.60 18,000 27,000 Arrest 1.50 9,000 2,700 Patrol activities 0.30 33,900 The police are paid $25 per hour. The actual amount of hours per activity for the year were as follows: Police Activity Actual Hours per Activity Theft 0.75 Arrest 2.00 Patrol activities 0.40 a. Determine the total budgeted cost to perform the three police activities. b. Determine the total actual cost to perform the three police activities. C. Determine the direct labor time variance. d. What does the time variance suggest?
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