The following data relate to direct labor costs for the current period: Standard costs 7,400 hours...

The following data relate to direct labor costs for the current period:

Standard costs	7,400 hours at $11.60
Actual costs	6,300 hours at $10.50

What is the direct labor rate variance?

a.$19,690 unfavorable

b.$6,930 favorable

c.$19,690 favorable

d.$12,760 favorable

Solutions

Expert Solution

ANSWER TO THE QUESTION

	LABOUR RATE VARIANCE	b. $6930 FAVOURABLE

LABOUR RATE VARIANCE

ACTUAL HOURS	X	ACTUAL RATE	−	ACTUAL HOURS	X	STANDARD RATE
6300	X	$ 10.50	−	6300	X	$ 11.60
$ 66,150.00	−	$ 73,080.00
$6930 FAVOURABLE

ekkarill92 answered 1 year ago

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