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Toby Tools Die

Price: $1.99

During March 2014, Toby Tool & Die Company worked on four jobs. A review of
direct labor costs reveals the following summary data.

Actual Standard
Number  Hours  Costs  Hours  Costs  Variance 
A257  221 $4,420 225 $4,500 80 F
A258  450 9,450 430 8,600 850 U
A259  300 6,180 300 6,000 180 U
A260  116 2,088 110 2,200 112 F
Total variance 838

Analysis reveals that Job A257 was a repeat job. Job A258 was a rush order that required
overtime work at premium rates of pay. Job A259 required a more experienced replacement
worker on one shift. Work on Job A260 was done for one day by a new trainee when
a regular worker was absent.

Prepare a report for the plant supervisor on direct labor cost variances for March. The report
should have columns for (1) Job No., (2) Actual Hours, (3) Standard Hours, (4) Quantity
Variance, (5) Actual Rate, (6) Standard Rate, (7) Price Variance

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