Engineered cost variances Fred's Freight employs three drivers who are paid $20 per hour for regular time and $30 for overtime. A single pickup and delivery requires, on average, one hour of driver time. Drivers are paid for a 40-hour week because they must be on call all day. One driver stands by for after-hour deliveries. Analyze the labor cost variances for one week in which the company made 105 daytime deliveries and 12 after-hour deliveries. The payroll for drivers for that week was $2,780. The employees worked 120 hours of regular time and 15 hours of overtime. Note: Do not use a negative sign with your answers. Total labor variance: $ 320 ✓ Unfavorable Labor rate variance: $ (70) x Labor efficiency variance: $ 390 Favorable Unfavorable

Engineered cost variances Fred's Freight employs three drivers who are paid $20 per hour for regular time and $30 for overtime. A single pickup and delivery requires, on average, one hour of driver time. Drivers are paid for a 40-hour week because they must be on call all day. One driver stands by for after-hour deliveries. Analyze the labor cost variances for one week in which the company made 105 daytime deliveries and 12 after-hour deliveries. The payroll for drivers for that week was $2,780. The employees worked 120 hours of regular time and 15 hours of overtime. Note: Do not use a negative sign with your answers. Total labor variance: $ 320 ✓ Unfavorable Labor rate variance: $ (70) x Labor efficiency variance: $ 390 Favorable Unfavorable

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Description: Engineered cost variancesFred's Freight employs three drivers who are paid $20 per hour for regular time and $30 for overtime. A single pickup and delivery requires, on average, one hourof driver time. Drivers are paid for a 40-hour week because the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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