Total Labor VarianceTico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.015 hours. During the month of April, 450,000 bottles were produced using 14,000labor hours @ $8.50. The standard wage rate is $7.00 per hour.Required:Calculate the total variance for production labor for the month of April. Enter amounts as positive numbers. If required, round your answer to the nearest cent.

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Description: Total Labor VarianceTico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.015 hours. During the month of April, 450,000 bottles were produced using 14,000labor hours @ $8.50. The standard wage rate is $7.00 per hour.R

Total variance for production labor = (Standard Rate * Standard Hours) – (Actual Rate * Actual…

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

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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Total Labor Variance
Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.015 hours. During the month of April, 450,000 bottles were produced using 14,000
labor hours @ $8.50. The standard wage rate is $7.00 per hour.
Required:
Calculate the total variance for production labor for the month of April. Enter amounts as positive numbers. If required, round your answer to the nearest cent.

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