Calculate labor rate and efficiency variances for past month

Reference no: EM131893143

Problem

K& J Web Designs creates Web sites for businesses, K&J has a basic Web site creation package that it offers for a fee of $740. This package includes everything that a business would need to have a simple but functional Web site built, K&J estimates that each of these web sites should take, on average, 8.9 hours of Web designer time. K&J pays its web design employees an average of $36 per hour.

Last month, K& J sold and built 140 Web sites for $740 each. Web design employees worked a total of 850 hours at a total payroll cost of $40, 800.

Calculate the labor rate and efficiency variances for the past month.

Calculate the standard amount of contribution margin (sales price less variable labor cost) that K&J would expect to make on an average Web site.

Calculate the actual amount of contribution margin (sales price less variable labor cost) that K&J made, on average, on each Web site in the past month.

Reference no: EM131893143

Questions Cloud

Discuss how your perceptions influence your behavior : Discuss how your perceptions influence your behavior whether you can limit exposure to stimuli that have a negative impact on the behavior you want to change.

Are there different ways to collaborate or avoid : Could Jay have taken a different tact that would have resulted in a more productive conflict? What other variations on styles have you observed?

Prepare a cash receipts budget for may june and july : Prepare a cash receipts budget for May, June and July. Prepare a Purchases budget for April, May and June. Prepare a disbursement budget for May, June and July.

Construct a memorandum for the svp : Construct a minimum 525-word memorandum for the SVP providing insights and commentary.

Calculate labor rate and efficiency variances for past month : Calculate the labor rate and efficiency variances for the past month. Calculate the actual amount of contribution margin.

Discuss hartmans bonus will increase based on classification : Discuss if Hartman's bonus will increase based on the classification of the debt securities and explain the reasons why.

How would you structure your project teams to improve : How would you structure your project teams to improve communications the most in an agile environment?

What is the adjusted basis of the rental house and land : What is the adjusted basis of the rental house and land at the time of the sale? What is the adjusted basis of the tennis court at the time of the sale?

What is the maximum amount that karen may deduct : Karen, 28 years old and a single taxpayer has a salary. What is the maximum amount that Karen may deduct for contributions to her traditional IRA for 2016?

User Account

All Pages