Given the following information for The Pelican Inn, what is the direct labor time variance? Actual housekeeping staff hours worked 760 Standard staff hours for rooms cleaned 800 Standard staff pay rate per hour $12.50 Actual staff pay rate per hour $13.00 a.$(500) favorable b.$400 unfavorable c.$500 unfavorable d.$(20) favorable
Given the following information for The Pelican Inn, what is the direct labor time variance? Actual housekeeping staff hours worked 760 Standard staff hours for rooms cleaned 800 Standard staff pay rate per hour $12.50 Actual staff pay rate per hour $13.00 a.$(500) favorable b.$400 unfavorable c.$500 unfavorable d.$(20) favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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Given the following information for The Pelican Inn, what is the direct labor time variance?
| Actual housekeeping staff hours worked | 760 |
| Standard staff hours for rooms cleaned | 800 |
| Standard staff pay rate per hour | $12.50 |
| Actual staff pay rate per hour | $13.00 |
a.$(500) favorable
b.$400 unfavorable
c.$500 unfavorable
d.$(20) favorable
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