For All 4 of These Variance Computations: Please compute both: the amount of the
ID: 2466830 • Letter: F
Question
For All 4 of These Variance Computations: Please compute both: the amount of the variance and also state if each of the variances is favorable or unfavorable. please show your work to obtain credit on each of the 4 computations. part 2a. The following labor standards have been established for customized wooden desks for universities: The following data pertain to operations concerning customized wooden desks for universities for the last month: 1. Compute the labor rate variance for the month. 2. Compute the labor efficiency variance for the month.Explanation / Answer
1.
Labour rate variance=actual cost-(actual quantity×standard rate )
=10600-(1000×10.20)
=400(U)
2.
Labour efficiency variance=standard rate-(actual hour -standard hour)
==10.20(1000-(5.4×200))
==10.20(1000-1080)
==816(F)