a. The following direct labor data pertain to the operations of Jacuzi Instrument Corporation. for the month of June: Actual labor rate Actual hours used Standard labor rate Standard hours allowed $18.50 per hr. 2,525 $18.25 per hr. 2,600 Instructions Prepare a matrix and calculate the labor variances. Price Variance Total Labor Variance Quantity Variance
a. The following direct labor data pertain to the operations of Jacuzi Instrument Corporation. for the month of June: Actual labor rate Actual hours used Standard labor rate Standard hours allowed $18.50 per hr. 2,525 $18.25 per hr. 2,600 Instructions Prepare a matrix and calculate the labor variances. Price Variance Total Labor Variance Quantity Variance
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Subject : Accounting

Transcribed Image Text:a. The following direct labor data pertain to the operations of Jacuzi Instrument
Corporation. for the month of June:
Actual labor rate
Actual hours used
Standard labor rate
Standard hours allowed
$18.50 per hr.
2,525
$18.25 per hr.
2,600
Instructions
Prepare a matrix and calculate the labor variances.
Price Variance
Total
Labor Variance
Quantity Variance
b. Lawn Pros Yard Services, Inc. is trying to establish the standard labor cost of a
typical lawn that they cut for their customers each week. The following data have been
collected from time and motion studies over the last several months:
Actual time spent on cutting
.75 hour
Hourly wage rate
Payroll taxes
Equipment setup and downtime
Cleanup and rest periods
Fringe benefits
$20.00
7% of wage rate
10% of actual labor time
10% of actual labor time
20% of wage rate
Instructions
(a) Determine the standard direct labor hours per cutting
Determine the standard direct labor hourly rate.
(b)
(c) Determine the standard direct labor cost per setup and downtime
(d) If a a new customer's lawn took 1.25 hours to cut at the standard hourly rate, what
was the direct labor quantity variance?
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