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Nonamiya [84]
3 years ago
6

he following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.9 hours S

tandard labor rate $ 15.80 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 8,800 hours Actual total labor cost $ 136,400 Actual output 870 units What is the labor rate variance for the month
Business
1 answer:
FrozenT [24]3 years ago
6 0

Answer:

Direct labor rate variance= $2,640 favorable

Explanation:

Giving the following information:

Standard labor rate $ 15.80 per hour

Actual hours worked 8,800 hours

Actual total labor cost $ 136,400

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 136,400/8,800= $15.5

Direct labor rate variance= (15.8 - 15.5)*8,800= $2,640 favorable

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