Claudia King, the manager of the city of Elko road maintenance shop uses standards to judge performance. Because a clerk mistakenly discarded some labor records, however, Claud has only partial data for April. She knows that the total direct-labor flexible. budget variance was $3,368 favorable. Moreover, a recent pay raise produced an unfavorable labor price variance for April of $1,232. The actual hours of input were 1,760 and the standard labor price was $20 per hour. Requirements 1. Find the actual labor rate per hour. 2. Determine the standard hours allowed for the output achieved. Requirement 1. Find the actual labor rate per hour. First enter the formula, then compute the actual labor rate per hour. (Round your answer to two decimal places. Abbreviations used: Act. - Actual; F = Favorable; Qty. = Quantity; Prod. = Production; Std. = Standard; U = Unfavorable.) Std. labor price + ( $ Labor price variance [U]/ 1,232 Actual hours used 1,760 20.00 $ )= Act. price per unit )= $ 20.70 Requirement 2. Determine the standard hours allowed for the output achieved. Begin by calculating the actual direct labor cost. First enter the formula, then compute the actual direct labor cost. (Round your answer to the nearest whole dollar.) Actual direct labor cost X X
Claudia King, the manager of the city of Elko road maintenance shop uses standards to judge performance. Because a clerk mistakenly discarded some labor records, however, Claud has only partial data for April. She knows that the total direct-labor flexible. budget variance was $3,368 favorable. Moreover, a recent pay raise produced an unfavorable labor price variance for April of $1,232. The actual hours of input were 1,760 and the standard labor price was $20 per hour. Requirements 1. Find the actual labor rate per hour. 2. Determine the standard hours allowed for the output achieved. Requirement 1. Find the actual labor rate per hour. First enter the formula, then compute the actual labor rate per hour. (Round your answer to two decimal places. Abbreviations used: Act. - Actual; F = Favorable; Qty. = Quantity; Prod. = Production; Std. = Standard; U = Unfavorable.) Std. labor price + ( $ Labor price variance [U]/ 1,232 Actual hours used 1,760 20.00 $ )= Act. price per unit )= $ 20.70 Requirement 2. Determine the standard hours allowed for the output achieved. Begin by calculating the actual direct labor cost. First enter the formula, then compute the actual direct labor cost. (Round your answer to the nearest whole dollar.) Actual direct labor cost X X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Claudia King, the manager of the city of Elko road maintenance shop uses standards to judge performance. Because a clerk mistakenly discarded some labor records, however, Claud has only partial data for April. She knows that the total direct-labor flexible-
budget variance was $3,368 favorable. Moreover, a recent pay raise produced an unfavorable labor price variance for April of $1,232. The actual hours of input were 1,760 and the standard labor price was $20 per hour.
Requirements
1. Find the actual labor rate per hour.
2. Determine the standard hours allowed for the output achieved.
Requirement 1. Find the actual labor rate per hour.
First enter the formula, then compute the actual labor rate per hour. (Round your answer to two decimal places. Abbreviations used: Act. - Actual; F = Favorable; Qty. = Quantity; Prod. = Production; Std. = Standard; U = Unfavorable.)
Std. labor price
Labor price variance [U] /
Actual hours used
1,760
20.00
1,232
1
X
+($
Requirement 2. Determine the standard hours allowed for the output achieved.
Begin by calculating the actual direct labor cost. First enter the formula, then compute the actual direct labor cost. (Round your answer to the nearest whole dollar.)
Actual direct labor cost
X
C
=
=
) = Act. price per unit
) = $
20.70](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2544b074-24fb-4c8c-9c46-194a4d33d8d8%2F533b8a7c-5e63-4256-8950-d1da311af06f%2Fhm0w4rd_processed.png&w=3840&q=75)
Transcribed Image Text:Claudia King, the manager of the city of Elko road maintenance shop uses standards to judge performance. Because a clerk mistakenly discarded some labor records, however, Claud has only partial data for April. She knows that the total direct-labor flexible-
budget variance was $3,368 favorable. Moreover, a recent pay raise produced an unfavorable labor price variance for April of $1,232. The actual hours of input were 1,760 and the standard labor price was $20 per hour.
Requirements
1. Find the actual labor rate per hour.
2. Determine the standard hours allowed for the output achieved.
Requirement 1. Find the actual labor rate per hour.
First enter the formula, then compute the actual labor rate per hour. (Round your answer to two decimal places. Abbreviations used: Act. - Actual; F = Favorable; Qty. = Quantity; Prod. = Production; Std. = Standard; U = Unfavorable.)
Std. labor price
Labor price variance [U] /
Actual hours used
1,760
20.00
1,232
1
X
+($
Requirement 2. Determine the standard hours allowed for the output achieved.
Begin by calculating the actual direct labor cost. First enter the formula, then compute the actual direct labor cost. (Round your answer to the nearest whole dollar.)
Actual direct labor cost
X
C
=
=
) = Act. price per unit
) = $
20.70
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