Labour variances, Cost Accounting

Assignment Help:

Labour Variances

2311_labour variances.png

From our basic data, we can calculate the labour variances as given as:

i. Labour Rate Variance = (AH x AR) - (AH  x SR)

                                       = AH (AR - SR)

NB:  AH x AR = Shs.64, 350

Labour Rate Variance = 64,350 - (4,500 x 14)

                                = Shs.1, 350  Unfavourable.

The rate is unfavorable since we spent more than expected.

ii. Labour Efficiency as usage variance: = (AH X SR) - (SH x SR)

                                                         = (AH - SH) SR

                                                         = (4,500 - 5,000) 14

                                                         = 7,000 Favourable

The variance is favourable since we spent less than the expected cots.

Note: Total Labour Variance  = Rate Variance + Efficiency Variance

                                           = 1,350 (Unfavourable) + 7,000 (Favourable)

                                           = Shs.5, 650  Favourable.


Related Discussions:- Labour variances

Determine the depletion cost per board foot, Conan O'Brien Logging and Lumb...

Conan O'Brien Logging and Lumber Company owns 3,300 acres of timberland on the north side of Mount Leno, which was purchased in 2000 at a cost of $650 per acre. In 2012, O'Brien be

CORPORATE ACCOUNTING, I WENT TO MAKE ONE ASSIGNMENT CAN YOU GIVE ME QUOTE O...

I WENT TO MAKE ONE ASSIGNMENT CAN YOU GIVE ME QUOTE OR LINK TO SHARE ASSIGNMENT DETAIL

Calculate the approximate yield to maturity of the bonds, Netflix Inc wants...

Netflix Inc wants to issue discount bonds with a market value equal to 45% of their face value. The income tax rate of Netflix is 30%. The bonds will carry 3.5% coupon, paying inte

Organize the accounting entries, JK is a motor dealership which organizes i...

JK is a motor dealership which organizes its financial statements to 30 November. In the year to 30 November 2009, transactions integrated the following: (a) JK had motor vehicl

Calculate the weighted average cost of capital, A company is investigating ...

A company is investigating the effect on its cost of capital with respect to the tax rate. Suppose there is a capital structure of 20% debt, 10% preferred stock, and 70% common sto

Calculate the payback period and accounting rate of return, Freshly Ground ...

Freshly Ground Investments have just made an investment of $550 000 in a new Toyota Hilux (with trailer) delivery vehicle. This vehicle will be used for deliveries and generate rev

Estimate the initial after-tax cash outlay, Shubenacadie Inc. is currently ...

Shubenacadie Inc. is currently considering a project with a 5-year life that it believes has the potential to return the company to profitability. Based on the results from a marke

Explain the respective roles of the securities, Explain the respective role...

Explain the respective roles of the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS) in the setting of accounting standards?

Shrinkage - production process, Shrinkage - Production Process This re...

Shrinkage - Production Process This refers to a disappearance or loss of material inputs utilized throughout the production process. It happens mainly via the evaporation. Thi

Giardia, Place a prepared slide of Giardia first under tlie low power and t...

Place a prepared slide of Giardia first under tlie low power and then under the high power of the microscope and observe tlie followilig characters. i) Bilaterally symmetrical

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd