how does the renegotiated labor contract impact the standard cost of cars for gm
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How does the renegotiated labor contract impact the standard cost of cars for GM?. Original blog posting (February 24, 2014 ). Chrysler renegotiates its labor contract. With the United Auto Workers union

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how does the renegotiated labor contract impact the standard cost of cars for gm
How does the renegotiated labor contract impact the standard cost of cars for GM?

Original blog posting (February 24, 2014)

chrysler renegotiates its labor contract
Chrysler renegotiates its labor contract
  • With the United Auto Workers union
  • New hires were to be paid $14 per hour, down from the $28 per hour veteran workers received
  • Cut resulted in an average combined wage and benefit rate per hour in 2011 of $49, compared to $76 per hour in 2007
question 1
Question 1

What standard rates would be impacted by the renegotiated labor rate?  Why?

question 2
Question 2

What standard rates would be impacted by the change in the way overtime is calculated? Why?

question 3
Question 3

What variances would be impacted by the contract renegotiations if Chrysler were to not adjust its standards? Explain.

question recap
Question Recap
  • What standard rates would be impacted by the renegotiated labor rate?  Why?
  • What standard rates would be impacted by the change in the way overtime is calculated? Why?
  • What variances would be impacted by the contract renegotiations if Chrysler were to not adjust its standards? Explain.
slide7

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/Related video resources can be found at http://www.youtube.com/user/accountingheadlinesQuestions or comments? Contact Dr. Wendy Tietz at [email protected]

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