Labor Performance Variances. Ellsworth-Trevor, Inc. prepares monthly production budgets for its

Labor Performance Variances. Ellsworth-Trevor, Inc. prepares monthly production budgets for its largest selling product, Elsby, which is manufactured through three departments: Mixing, Processing, and Packaging. Budgeted and actual amounts for April were as shown on the next page.

Budgeted Actual

Labor

Units

Department

Hours

Cost

Produced

Mixing ………..

1,100

$ 4,312

740

Processing ……..

3,320

12,700

615

Packaging ……..

580

1,744

800

The following standards have been adopted for this product:

Standard

Hours

Department per Unit

Mixing……….. 1.5

Processing. . . . . . .. 5.0

Packaging. . . . . . .. 0.5

Standard Labor

Cost per Hour

$4.10

4.50

4.00

Required: A labor cost control report for April.

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