Paulson's Piano Service, Inc. is trying to establish the standard labor cost oftuning a typical piano. The following data have been collected from time andmotion studies conducted over the past three months.Actual time spent on tuning a piano 1.25 hoursHourly wage ratePayroll taxesSetup and downtimeTravel and rest periodsFringe benefits$5012% of wage rate5% of actual labor time15% of actual labor time20% of wage rateInstructions(a)(b)(c)(d)Determine the standard direct labor hour per each piano that is tuned.Determine the standard direct labor hourly rate.Determine the standard direct labor cost per each piano that is tuned.If it took 1.65 hours to tune a piano at the standard hourly rate, whatwas the direct labor quantity variance?During the month of May, Paulson's Piano service tuned 80 pianos.The average time spent on each piano was 1.75 hours. The averagecost per hour was $62.25 per hour. Paulson's had to hire some lessexperienced part time help in order to handle the demand.(1)(2)(3)(e)Calculate the direct labor price variance.Calculate the direct labor quantity variance.Calculate the total direct labor variance.(4)Explain what might have caused the variances.

Variance is the comparison of the standard performance with the actual performance.

Paulson's Piano Service, Inc. is trying to establish the standard labor cost of tuning a typical piano. The following data have been collected from time and motion studies conducted over the past three months. Actual time spent on tuning a piano 1.25 hours Hourly wage rate Payroll taxes Setup and downtime Travel and rest periods Fringe benefits $50 12% of wage rate 5% of actual labor time 15% of actual labor time 20% of wage rate

Paulson's Piano Service, Inc. is trying to establish the standard labor cost of tuning a typical piano. The following data have been collected from time and motion studies conducted over the past three months. Actual time spent on tuning a piano 1.25 hours Hourly wage rate Payroll taxes Setup and downtime Travel and rest periods Fringe benefits $50 12% of wage rate 5% of actual labor time 15% of actual labor time 20% of wage rate

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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