[mahi819]

Thanks

[mahi819]

Hi
Here, I am little bit confused about two things.
1) the question requires us to calculate the variances, which means that we have to give answer in absolute amount. So why did we net off here instead of using actual formula?
2)step 4. Calculate the traditional labour rate variance:

Standard cost for actual time = 350 minutes * $0.20/minute = $70
Labour rate variance = Actual cost – Standard cost for actual time
Labour rate variance = $80 – $70 = $10 Adverse
here why we multiply actual min into std labour rate/min instead of 400 std min?

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