Page 247 - P1 Integrated Workbook STUDENT 2018

Answers

Labour efficiency variance

(SH – AHw) × SR

SH = 4 hours per unit × 1,100 units produced = 4,400 hours

AHw (actual hours worked) = 4,180 hours

SR = $15 per hour

Variance = (4,400 – 4,180) × $15 = $3,300

Idle time variance:

Actual hours worked × standard rate per hour 63,000
Actual hours paid × standard rate per hour 62,700
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Idle time variance this is always adverse $300 A
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