14-2. Labor Performance Report; Efficiency Variances. The De Leone Companyis interested in improving its control over labor costs. The Accounting Depart-ment assembled the following data for September:CH. 14 CONTROLLING AND ACCOUNTING FOR LABOR COSTSLabor ActivityProductive labor time....Setup time.....Cleanup time.Down time....ActualHours8,000200110350ActualExpenses$46,9001,2544621,776429A predetermined standard of 7,700 hours of productive labor has beenprovided. Statistical analysis has established that setup time, cleanup time, anddown time should be 3%, 1%, and 4%, respectively, of standard productiontime allowed. The standard labor rate is $6 per hour.Required: (1) A labor performance report for September to be sent to theplant manager. For control purposes, it should include total variances andlabor efficiency variances.(2) An explanation and analysis for any difference between the labor effi-ciency variance and the total labor variance.

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Description: 14-2. Labor Performance Report; Efficiency Variances. The De Leone Companyis interested in improving its control over labor costs. The Accounting Depart-ment assembled the following data for September:CH. 14 CONTROLLING AND ACCOUNTING FOR LABOR COST

A performance report about the labour or on any activity is based on the fact of actual truth and…

Business

Accounting

Required: (1) A labor performance report for September to be sent to the plant manager. For control purposes, it should include total variances and labor efficiency variances. (2) An explanation and analysis for any difference between the labor effi- ciency variance and the total labor variance.

Required: (1) A labor performance report for September to be sent to the plant manager. For control purposes, it should include total variances and labor efficiency variances. (2) An explanation and analysis for any difference between the labor effi- ciency variance and the total labor variance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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