Question

In: Accounting

Annapolis Company completes job #601 which has a standard of 570 labor hours at a standard...

Annapolis Company completes job #601 which has a standard of 570 labor hours at a standard rate of $19.30 per hour. The job was completed in 600 hours and the average actual labor rate was $18.00 per hour. What is the labor rate variance? A negative number indicates an favorable variance and a positive number indicates an unfavorable variance.

Solutions

Expert Solution

Labor Rate Vairance = $ 780 Unfavourable

Explaination

Labor Rate Vairance = (standard rate - actual rate) * actual hours

= (19.3 - 18) * 600

= $ 780 Unfavourable

So the correct answer

Labor Rate Vairance = $ 780 Unfavourable

ekkarill92 answered 2 years ago
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