During March 2020, Sheffield 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 |
||||||
A257 | 210 | $4,200 | 218 | $4,360 | $160 | F | |||||
A258 | 440 | 10,120 | 429 | 8,580 | 1,540 | U | |||||
A259 | 300 | 6,450 | 298 | 5,960 | 490 | U | |||||
A260 | 120 | 2,280 | 112 | 2,240 | 40 | F | |||||
Total variance | $1,910 | U |
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 actual rate and standard
rate to 2 decimal places, e.g. 10.50.)
SHEFFIELD TOOL & DIE
COMPANY Direct Labor Variance Report March 31, 2020For the Month Ended March 31, 2020For the Year Ended March 31, 2020 |
||||||||||||||||||
Job |
Actual |
Standard |
Quantity |
Actual |
Standard |
Price |
Price |
|||||||||||
A257 | $ |
FavorableUnfavorableNeither favorable nor unfavorable |
$ | $ | $ |
Neither favorable nor unfavorableUnfavorableFavorable |
New TraineeReplacement WorkerRepeat JobRush Job |
|||||||||||
A258 |
UnfavorableFavorableNeither favorable nor unfavorable |
$ | $ |
UnfavorableFavorableNeither favorable nor unfavorable |
Replacement WorkerRepeat JobRush JobNew Trainee |
|||||||||||||
A259 |
Neither favorable nor unfavorableFavorableUnfavorable |
$ | $ |
FavorableNeither favorable nor unfavorableUnfavorable |
Replacement WorkerRush JobRepeat JobNew Trainee |
|||||||||||||
A260 |
UnfavorableFavorableNeither favorable nor unfavorable |
$ | $ |
UnfavorableNeither favorable nor unfavorableFavorable |
New TraineeRepeat JobRush JobReplacement Worker |
|||||||||||||
Totals | $ |
UnfavorableFavorableNeither favorable nor unfavorable |
$ |
FavorableNeither favorable nor unfavorableUnfavorable |
During March 2020, Sheffield Tool & Die Company worked on four jobs. A review of direct...
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