a. How many temporary employees should the manager hire for December? employees b. If each temporary employee earns a standard $19 per hour, what would be the labor time variance if the actual number of additional letters sorted in December was 31,716,000? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. $
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Direct Labor Standards for Nonmanufacturing Operations
One of the operations in the Wonderland Post Office is a mechanical mail sorting operation. In this operation, letter mail is sorted at a rate of one letter per second. The letter is mechanically sorted from a three-digit code input by an operator sitting at a keyboard. The manager of the mechanical sorting operation wants to determine the number of temporary employees to hire for December. The manager estimates that there will be an additional 30,798,000 pieces of mail in December, due to the upcoming holiday season.
Assume that the sorting operators are temporary employees. The union contract requires that temporary employees be hired for one month at a time. Each temporary employee is hired to work 145 hours in the month.
a. How many temporary employees should the manager hire for December?
employees
b. If each temporary employee earns a standard $19 per hour, what would be the labor time variance if the actual number of additional letters sorted in December was 31,716,000? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
$
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