Sarah Aiken is the owner of Ridgewood Paws, a dog-groomingservice. At standard, it takes...

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Accounting

Sarah Aiken is the owner of Ridgewood Paws, a dog-groomingservice. At standard, it takes 1.0 hour to groom each dog. Duringthe month of October, it took Ridgewood Paws employees 338 hours togroom 313 dogs, at a total labor cost of $4,732. In November,employees spent 371 hours grooming 322 dogs, at a total labor costof $6,604; in December, 381 hours were used to groom 312 dogs, at atotal labor cost of $7,544. The wage rate standard for groomers is$14 per hour.

(a) Calculate the labor rate and efficiency variances for eachof the past three months. (Round per unit amounts to 2 decimalplaces and final answers to 0 decimal places, e.g. 125. Enter allvariances as a positive number.)

October November December
Labor Rate Variance $
UnfavorableFavorableNeither Unfavorable nor Favorable $
UnfavorableNeither Unfavorable nor FavorableFavorable $
FavorableNeither Unfavorable nor FavorableUnfavorable
Labor Efficiency Variance $
UnfavorableFavorableNeither Unfavorable nor Favorable $
UnfavorableNeither Unfavorable nor FavorableFavorable $
Neither Unfavorable nor FavorableUnfavorableFavorable

Answer & Explanation Solved by verified expert
4.2 Ratings (789 Votes)
October Actual number of dogs groomed 313 Standard hours Actual number of dogs groomed Standard hours per dog groomed Standard hours 313 10 Standard hours 313 Labor rate variance Actual labor cost Actual hours Standard labor rate per hour Labor rate variance 4732 338 1400 Labor rate    See Answer
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In: AccountingSarah Aiken is the owner of Ridgewood Paws, a dog-groomingservice. At standard, it takes 1.0...Sarah Aiken is the owner of Ridgewood Paws, a dog-groomingservice. At standard, it takes 1.0 hour to groom each dog. Duringthe month of October, it took Ridgewood Paws employees 338 hours togroom 313 dogs, at a total labor cost of $4,732. In November,employees spent 371 hours grooming 322 dogs, at a total labor costof $6,604; in December, 381 hours were used to groom 312 dogs, at atotal labor cost of $7,544. The wage rate standard for groomers is$14 per hour.(a) Calculate the labor rate and efficiency variances for eachof the past three months. (Round per unit amounts to 2 decimalplaces and final answers to 0 decimal places, e.g. 125. Enter allvariances as a positive number.)October November DecemberLabor Rate Variance $UnfavorableFavorableNeither Unfavorable nor Favorable $UnfavorableNeither Unfavorable nor FavorableFavorable $FavorableNeither Unfavorable nor FavorableUnfavorableLabor Efficiency Variance $UnfavorableFavorableNeither Unfavorable nor Favorable $UnfavorableNeither Unfavorable nor FavorableFavorable $Neither Unfavorable nor FavorableUnfavorableFavorable

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