Problem 11-4 (Part Level Submission) Macaron Web Designs creates websites for bu
ID: 2578180 • Letter: P
Question
Problem 11-4 (Part Level Submission) Macaron Web Designs creates websites for businesses. Macaron has a basic website creation package that it offers for a flat fee of $710. This package includes everything that a business would need to have a simple but functional website built. Macaron estimates that each of these websites should take, on average, 7.8 hours of Web designer time. Macaron pays its Web design employees an average of $43 per hour. Last month, Macaron sold and built 130 websites for $710 each. Web design employees worked a total of 800 hours at a total payroll cost of $36,000 (a) Calculate the labor rate and efficiency variances for the past month. (Round intermediate calculations to 2 decimal places, e.g. 14.37 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.) Labor Rate Variance Labor Efficiency Variance LINK TO TEXTExplanation / Answer
Labour rate vaiance = (standard rate-actual rate)actual hours
= (43*800-36000)
Labour rate variance = 1600 Unfavourable
Labour efficiency variance = (standard hour-actual hours)standard rate
= (130*7.8-800)43
Labour efficiency variance = 9202 Favourable