# (Solved Homework): The following computations of March labor variances for Sam’s Supply Company are incomplete. The missing items are labeled (a) through (d)….

The following computations of March labor variances for Sam’s Supply Company are incomplete. The missing items are labeled (a) through (d).

Labor rate variance = 4,800 hours  [(a) – \$8.50] = \$350 favorable

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(Solved Homework): The following computations of March labor variances for Sam’s Supply Company are incomplete. The missing items are labeled (a) through (d)….
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Labor efficiency variance = (b)  [(c) – 5,000 hours] = \$(d)

On the appropriately labeled line, identify each missing item by name (a through c) and show the missing value (a through d). Show supporting computations in the space provided.

(a) _________________________ \$_______________

(b) _________________________ \$_______________ (c) _________________________ ____________________ hours

(d) \$______________ F or U [Choose the correct term.]

(e) During March, the supervisor left for vacation without arranging for a replacement. Which variances would have been most affected by this situation? _________________________ SHOW COMPUTATIONS PLEASE

 4,800 hours ´ [(a) – \$8.50] = \$350 favorable (a-8.50) = .0729 a = 8.5729 Standard rate = a = 8.5729 b = Standard rate = 8.5729 c = Actual hours = 4800 Labor efficiency variance = (b) ´ [(c) – 5,000 hours] LEV = 8.5729(4800-5000) LEV =1714.58 F = d e) e) Labor efficiency variance (assuming the supervisor is on paid vacation)

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