Question

Problem 10-171 The following labor standards have been ... The following labor standards have been established for a particular product: Standard labor hours per unit of output 4.5 hours Standard labor rate $19.70 per hours The following data pertain to operations concerning the product for the last month: Actual hours worked 6,500 hours Actual total labor cost $130,975 Actual output 1,400 units Required: a. What is the labor rate variance for the month

Answer 1

Answer:

Labour rate variance    $2,925 unfavorable

Explanation:

The labour rate variance is the difference between the standard labour cost allowed for the actual hours worked and  the actual labor cost for the same hours

                                                                               $

Standard labour cost ($19.70× 6500)                128,050

Actual labour cost                                               130,975    

Labour rate variance                                           2,925 unfavorable