Cow, Inc. has a maintenance shop where repairs to its motor vehicles are done. During last month's labor strike, certain records were lost. The actual input of direct labor hours was 1,000 and the resulting direct labor budget variance was a favorable of Ph 3,400. The standard direct labor rate was Ph28.00 per hour, but an unexpected labor shortage necessitated the hiring of higher-paid workers for some jobs and resulted in a rate variance of Ph 800. The actual direct labor rate was? Ph 27.20 per hour Ph 28.80 per hour Ph 30.25 per hour Ph 31.40 per hour
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.
Cow, Inc. has a maintenance shop where repairs to its motor vehicles are done. During last month's labor strike, certain records were lost. The actual input of direct labor hours was 1,000 and the resulting direct labor
Ph 27.20 per hour
Ph 28.80 per hour
Ph 30.25 per hour
Ph 31.40 per hour
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