Direct Labor Time Variance
Maywood City Police uses variance analysis to monitor policestaffing. The following table identifies three common policeactivities, the standard time to perform each activity, and theiractual frequency to establish the expected cost to serve theseactivities.
| Police Activity | | Standard Hours
per Activity | | Actual Activities
for Year | | Total Employee
Hours | |
| Theft | | 0.60 | | 7,000 | | 4,200 | |
| Arrest | | 1.50 | | 18,000 | | 27,000 | |
| Patrol activities | | 0.30 | | 9,000 | | 2,700 | |
| | | | | | 33,900 | |
The police are paid $25 per hour.
The actual amount of hours per activity for the year were asfollows:
| Police Activity | | Actual Hours per Activity | |
| Theft | | 0.75 | |
| Arrest | | 2.00 | |
| Patrol activities | | 0.40 | |
a. Determine the total budgeted cost to performthe three police activities.
Total budgeted cost $
b. Determine the total actual cost to performthe three police activities.
Total actual cost $
c. Determine the direct labor timevariance.
$
