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Problem 11-3 Sarah Aiken is the owner of Ceradyne Paws, a dog-grooming service. At standard, it...

Problem 11-3 Sarah Aiken is the owner of Ceradyne Paws, a dog-grooming service. At standard, it takes 1.0 hour to groom each dog. During the month of October, it took Ceradyne Paws employees 329 hours to groom 307 dogs, at a total labor cost of $4,968. In November, employees spent 326 hours grooming 338 dogs, at a total labor cost of $5,738; in December, 328 hours were used to groom 316 dogs, at a total labor cost of $6,166. The wage rate standard for groomers is $16 per hour. (a) Calculate the labor rate and efficiency variances for each of the past three months. (Round per unit amounts to 2 decimal places and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.) October November December Labor Rate Variance $ $ $ Labor Efficiency Variance $ $ $

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Answer #1
Std Actual Std Rate Actual Labour cost
Hours Hours
October 307 329 16 4968
Nov 338 326 16 5738
Dec 316 328 16 6166
Labour rate Variance: Actual hours * Std rate - Actual labour cost
October = 329 *16 - 4968 =296 Fav
November = 326*16 - 5738 = 522 Unfav
December = 328*16 - 6166 = 918 Unfav
Labour efficiency Variance: Std rate (Std hours-Actual Hours)
October = 16 (307-329) = 352 Unfav
November= 16 ( 338-326) = 192 Fav
December= 16 (316-328) = 192 Unfav
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