Airon Company recently completed 10,600 units of its single product, consuming 32,000 labor hours that cost...
Airon Company recently completed 10,600 units of its single product, consuming 32,000 labor hours that cost the firm $480,000. According to manufacturing specifications, each unit should have required 3 hours of labor time at $15.40 per hour. On the basis of this information, determine Airon’s total labor variance.
Homework Answers
Total labor variance
= Standard labor cost - Actual labor cost
= (10,600*3*15.40) - 480,000
= 489,720 - 480,000
= 9,720 Favourable
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