PDF《Paper F5》

15 minutes for each pair. However, no-one told the accountant responsible for updating standard costs that the standard time per pair of gloves needed to be changed. Similarly, although all workers were given a 2% pay rise at the beginning of the last quarter, the accountant was not told about this either. Consequently, the standard was not updated to reflect these changes. When overtime is required, workers are paid 25% more than their usual hourly rate. Required: (a) Calculate the total labour rate and total labour efficiency variances for the last quarter. (2 marks) (b) Analyse the above total variances into component parts for planning and operational varianc........