Chapter 8, Problem 5PB

1.

To determine

Compute the direct labor time variance, if the department had typed 81,900 lines according to the original plan.

2.

To determine

Compute the actual labor time variance, as a result of typing 88,900 lines.

3.

To determine

Compute the direct labor rate variance as a result of the bonus.

4.

To determine

Compute the labor time variance in the first week if a new employee had been hired from the employment firm.

5.

To determine

State the decision that would be better, paying the bonus, or hiring another transcriptionist.