Question

The following labor standards have been established for a particular product Standard labor-hours per unit of output Standard labor rate 7.9 hours $15.45 per hour roduct for the last mo The following data pertain to operations concerning the product for the last month: Actual hours worked Actual total labor cost Actual output 10,000 hours $152,100 1,150 units What is the labor rate variance for the month?

Answer 1

Solution: Labor rate Variance Istandard rate - Actual rate & Actual hours worked 7 Standard rate. given) = $ 15.45 per hour Acrual rate I actual labor cost Actual hours worked = $15.21 per hour $152100 10000 7 - Actual hours worked given) 10000 hours then Labor rate variance [ 15:45-15.21 Xloooo 2400 favorable →