14-2. Labor Performance Report; Efficiency Variances. The De Leone Companyis interested in improving its control over labor costs. The Accounting Depart-ment assembled the following data for September:CH. 14 CONTROLLING AND ACCOUNTING FOR LABOR COSTSLabor ActivityProductive labor time....Setup time.....Cleanup time.Down time....ActualHours8,000200110350ActualExpenses$46,9001,2544621,776429A predetermined standard of 7,700 hours of productive labor has beenprovided. Statistical analysis has established that setup time, cleanup time, anddown time should be 3%, 1%, and 4%, respectively, of standard productiontime allowed. The standard labor rate is $6 per hour.Required: (1) A labor performance report for September to be sent to theplant manager. For control purposes, it should include total variances andlabor efficiency variances.(2) An explanation and analysis for any difference between the labor effi-ciency variance and the total labor variance.

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Description: 14-2. Labor Performance Report; Efficiency Variances. The De Leone Companyis interested in improving its control over labor costs. The Accounting Depart-ment assembled the following data for September:CH. 14 CONTROLLING AND ACCOUNTING FOR LABOR COST

A performance report about the labour or on any activity is based on the fact of actual truth and…

Business

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Required: (1) A labor performance report for September to be sent to the plant manager. For control purposes, it should include total variances and labor efficiency variances. (2) An explanation and analysis for any difference between the labor effi- ciency variance and the total labor variance.

Required: (1) A labor performance report for September to be sent to the plant manager. For control purposes, it should include total variances and labor efficiency variances. (2) An explanation and analysis for any difference between the labor effi- ciency variance and the total labor variance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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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Question

14-2. Labor Performance Report; Efficiency Variances. The De Leone Company
is interested in improving its control over labor costs. The Accounting Depart-
ment assembled the following data for September:
CH. 14 CONTROLLING AND ACCOUNTING FOR LABOR COSTS
Labor Activity
Productive labor time....
Setup time.....
Cleanup time.
Down time....
Actual
Hours
8,000
200
110
350
Actual
Expenses
$46,900
1,254
462
1,776
429
A predetermined standard of 7,700 hours of productive labor has been
provided. Statistical analysis has established that setup time, cleanup time, and
down time should be 3%, 1%, and 4%, respectively, of standard production
time allowed. The standard labor rate is $6 per hour.
Required: (1) A labor performance report for September to be sent to the
plant manager. For control purposes, it should include total variances and
labor efficiency variances.
(2) An explanation and analysis for any difference between the labor effi-
ciency variance and the total labor variance.

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Please provide answer in text (Without image)
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