Question

Xyz company makes one product and has calculated the following amounts for direct labor: ah x ar = $84,000; ah x sr = $83,000; sh x sr = $85,000. compute the total labor cost variance.

Answer 1

Answer:

1,000 Unfavorable

Explanation:

AH x AR = $84,000;

AH x SR = $83,000;

SH x SR = $85,000.

Compute the labor rate variance

then,

($84,000 - $83,000) = 1,000 Unfavorable

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