During March 2014, Toby Tool & Die Company worked on four jobs. A review of dire
ID: 2463130 • Letter: D
Question
During March 2014, Toby Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data.
Actual
Standard
Job Number
Hours
Costs
Hours
Costs
Total Variance
Analysis reveals that Job A257 was a repeat job. Job A258 was a rush order that required overtime work at premium rates of pay. Job A259 required a more experienced replacement worker on one shift. Work on Job A260 was done for one day by a new trainee when a regular worker was absent.
Prepare a report for the plant supervisor on direct labor cost variances for March. (Round quantity variance, actual rate, standard rate and price variance to 2 decimal places, e.g. 10.50.)
Actual
Standard
Job Number
Hours
Costs
Hours
Costs
Total Variance
A257 216 $5,184 221 $5,304 $ 120 F A258 431 11,637 419 10,056 1,581 U A259 301 7,676 302 7,248 428 U A260 116 2,552 108 2,592 40 F Total variance $1,849 UExplanation / Answer
Answer: Report for the plant supervisor on direct labor cost variances for March:
Job No. Actual hours standard hours Quantity variance Actual rate Standard rate Price variance Explannation A257 216 221 120 F 24 24 0 N Repeat job A258 431 419 288 U 27 24 1293 U Rush job A259 301 302 24 F 25.501661 24 452 U Replacement worker A260 116 108 192 U 22 24 232 F New trainee Total 336 U 1513 URelated Questions
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