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Problem 11-3 Sarah Aiken is the owner of Paver Paws, a dog-grooming service. At standard, it takes 1.0 hour to groom each dogof Paver Paws, a dog-grooming service. At standard, it takes 1.0 hour to groom each dog. During the month of October, it took

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Answer #1
October November December
Actual Hours (AH) 338 371 381
Actual Rate (AR)
October: (4732/338)
November: (6604/371)
December: (7544/381)
$    14.00 $       17.80 $       19.80
Standard Hours (SH)
October: 313*1
November: 322*1
December: 312*1
313 322 312
Standard Rate (SR) $    14.00 $       14.00 $       14.00
October November December
Labor rate Variance: $           -   NA $       1,410 unfavorable $       2,210 unfavorable
Labor Efficiency Variance: $        350 unfavorable $           686 unfavorable $          966 unfavorable
Labor rate Variance: Actual Hours*(Standard Rate - Actual Rate)
Labor Efficiency Variance: Standard Rate*(standard hours - Actual hours)

Workings:

October November December
Labor rate Variance: 338(14-14) 371(14-17.8) 381(14-19.8)
Labor Efficiency Variance: 14(313-338) 14(322-371) 14(312-381)
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