The following data pertain to operations concerning the product for the last month: Actual hours worked 8,100 hours Actual total labor cost $119,880 Actual output 800 units What is the labor rate variance for the month?
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Ответ:
Instructions are below.
Explanation:
Giving the following information:
We weren't provided with enough information to solve the requirement. But, I will provide an example and the formula to guide an answer.
For example:
Standard rate per hour= $15
Actual hours worked 8,100 hours
Actual total labor cost $119,880
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= 119,880/8,100= $14.8
Direct labor rate variance= (15 - 14.8)*8,100
Direct labor rate variance= $1,620 favorable
Ответ:
B