Question - During March 2017, Toby tool & Die Company worked on four Jobs. A review of direct labor costs reveals the following summary data.
|
Job Number
|
Actual
|
Standard
|
Total Variance
|
|
Hours
|
Costs
|
Hours
|
Costs
|
|
A257
|
200
|
$4,800
|
207
|
$4,968
|
$168 F
|
|
A258
|
470
|
12,690
|
452
|
10,848
|
1,842 U
|
|
A259
|
300
|
7,740
|
299
|
7,176
|
564 U
|
|
A260
|
110
|
2,420
|
102
|
2,448
|
25 F
|
|
Total variance
|
|
|
|
|
$2,210 U
|
Analysis reveals that Jon A257 was a repeat job. Job A258 was a rush order that required overtime work at premium rates of pay. Job A259 required a more experienced replacement worker on one shift. Work on Job A260 was done for one day by a new trainee when a regular worker was absent.
Required - Prepare a report for the plant supervisor on direct labor cost variances for March.