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GalinKa [24]
2 years ago
9

The following labor standards have been established for a particular product: Standard labor hours per unit of output 4.3 hours

Standard labor rate $ 17.80 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,300 hours Actual total labor cost $ 112,770 Actual output 1,400 units Required: a. What is the labor rate variance for the month
Business
1 answer:
Ierofanga [76]2 years ago
8 0

Answer:

See below

Explanation:

With regards to the above, labor rate variance is computed as;

Direct labor rate variance = (Standard rate - Actual rate) × Actual quantity

Given that;

Standard labor rate per hour = $17.8

Actual hours worked = 6,300

Actual total labor cost = $112,770

Actual rate = $112,770/6,300 = $17.9

Therefore,

Direct labor rate variance = ($17.8 - $17.9) × 6,300

= $630 unfavourable

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