Labor Rate and Efficiency Variances Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hour. During the month of April, 1,000,000 bottles were produced using 23,600 labor hours @ $18.00. The standard wage rate is $16.00 per hour. Required: Calculate the labor rate and efficiency variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable. Labor rate variance $ Labor efficiency variance $
Standard | Actual | |||||
Particulars | Hours | Rate | amount | Hours | Rate | amount |
Labour | 25,000.00 | 16.0000 | 400,000.00 | 23,600.00 | 18.00 | 424,800.00 |
Actual output | 1,000,000.00 | |||||
Labour hrs reqd (1000,000*.025) | 25,000.00 | |||||
DLRV= (SR-AR)AH | ||||||
DLRV= (16 - 18)23,600 | ||||||
DLRV= 47,200 U | ||||||
DLEV = (SH-AH)SR | ||||||
DLEV = (25,000 - 23,600)16 | ||||||
DLEV = (1,400)16 | ||||||
DLEV = 22,400 F |
Get Answers For Free
Most questions answered within 1 hours.