COMM 294 Study Guide - Final Guide: Income Statement, Llama, Asset
Document Summary
Cmp manufactures robots which have the ability to teach various commerce courses. There is only one model of robot which is programmed in its intended subject of expertise by another company. The company has lost records pertaining to the cost of labour for the current period. Fortunately, however, before the records were misplaced, a senior-level manager (who knew what he was doing) computed an unfavourable total direct labour variance of. Cmp"s standard costs for a single robot and actual costs (omitting direct labour costs) for the current period are shown below: Required: compute the direct materials price and quantity variances, compute the direct labour rate and efficiency variances, and note the company"s direct labour cost for the period. Suppose you have been hired to provide guidance to a company which has continually experienced a highly favourable direct labour rate variance and a highly unfavourable direct labour efficiency variance. Senior management is unsure what is going on.
