Midgley Corporation makes a product whose direct labor standards are 1.1 hours per unit and $12.00...

Midgley Corporation makes a product whose direct labor standards are 1.1 hours per unit and $12.00 per hour. In April, the company produced 5,200 units using 5,360 direct labor-hours. The actual direct labor cost was $61,910. The labor rate variance for April is: rev: 11_01_2016_QC_CS-68333 $2,410 U $2,571 F $2,410 F $2,571 U

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Expert Solution

Correct answer--- $2,410 F

Actual DATA for		5200	Units
	Quantity (AQ)	Rate (AR)	Actual Cost
Direct labor	5360	$ 11.55	$ 61,910.00

Standard DATA for		5200	Units
	Quantity (SQ)	Rate (SR)	Standard Cost
	[A]	[B]	[A x B]
Direct labor	( 1.1 hours of direct labor x 5200 Units)=5720 hours of direct labor	$ 12.00	$ 68,640.00

Labor Rate Variance
(	Standard Rate	-	Actual Rate	)	x	Actual Labor Hours
(	$ 12.00	-	$ 11.55	)	x	5360
	2410
	Variance		$ 2,410.00			Favourable-F

ekkarill92 answered 1 year ago

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