None At a recent seminar you attended, the invited speaker was discussing some of the advantages and disadvantages of standard costs interms of evaluating performance and motivating goal-congruent behavior on the part of employees. One criticism of standard costs inparticular caught your attention: The use of conventional standard costs may not provide appropriate incentives for improvementsneeded to compete effectively with world-class organizations. The speaker then discussed so-called continuous-improvementstandard costs. Such standards embody systematically lower costs over time. For example, on a monthly basis, it might be appropriateto budget a 1.0% reduction in per-unit direct labor cost.Assume that the standard wage rate into the foreseeable future is $26 per hour. Assume, too, that the budgeted labor-hour standardfor October of the current year is 3.10 hours and that this standard is reduced each month by 1%. During December of the current yearthe company produced 6,400 units of XL-10, using 23,000 direct labor hours. The actual wage rate per hour in December was $28.00.Required:1. Prepare a table that contains the standard labor-hour requirement per unit and standard direct labor cost per unit for the 4 months,October through January.2. Compute the direct labor efficiency variance for December. Was this variance favorable or unfavorable?Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare a table that contains the standard labor-hour requirement per unit and standard direct labor cost per unit for the 4months, October through January. (Do not round intermediate calculations. Round your "Standard Direct Labor Cost/Unit"answers to 2 decimal places and "Standard Labor-Hour Requirement/Unit" answers to 5 decimal places.)Standard Labor-HourRequirement/Unithour per unitStandardDirect LaborCost/UnitMonthOctoberNovemberhour per unitDecemberhour per unitJanuaryhour per unitRequired 2 >

Labor Efficiency Variance -The discrepancy between expected and actual work hours is measured by…

At a recent seminar you attended, the invited speaker was discus erms of evaluating performance and motivating goal-congruent behavior on the part of employees. One criticism of standa articular caught your attention: The use of conventional standard costs may not provide appropriate incentives for improve eeded to compete effectively with world-class organizations. The speaker then discussed so-called continuous-improvem tandard costs. Such standards embody systematically lower costs over time. For example, on a monthly basis, it might be a budget a 1.0% reduction in per-unit direct labor cost. Assume that the standard wage rate into the foreseeable future is $26 per hour. Assume, too, that the budgeted labor-hour or October of the current year is 3.10 hours and that this standard is reduced each month by 1%. During December of the c The company produced 6,400 units of XL-10, using 23,000 direct labor hours. The actual wage rate per hour in December w Required: Prepare a table that contains the standard labor-hour requirement per unit and standard direct labor cost per unit for the October through January.