The Worldwide Credit Card, Inc., uses standards to control the labor time involv

Question

The Worldwide Credit Card, Inc., uses standards to control the labor time involved in opening mail from card holders and recording the enclosed remittances. Incoming mail is gathered into batches, and a standard time is set for opening and recording each batch. The labor standards relating to one batch are as follows:

The record showing the time spent last week in opening batches of mail has been misplaced. However, the batch supervisor recalls that 168 batches were received and opened during the week, and the controller recalls the following variance data relating to these batches:

Determine the actual hourly rate paid to employees for opening batches last week. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

The Worldwide Credit Card, Inc., uses standards to control the labor time involved in opening mail from card holders and recording the enclosed remittances. Incoming mail is gathered into batches, and a standard time is set for opening and recording each batch. The labor standards relating to one batch are as follows:

Explanation / Answer

Total labour spending variance = Std cost for actula output-actual labour cost incurred -330 = 15*168-actual labour cost incurred actual labour cost incurred = 2520+330 = $2850 Let actual hrs worked be x Labour rate varince = (Std rate-actual rate) *Actual hrs paid = (12-2850/x)*x x = 250hrs Actual hourly rate = 2850/x = 2850/250 = $11.4

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