Given below: Direct Labor Standard wage rate per direct labor hour $10 Actual wa

Question

Given below:

                                                                                               Direct Labor

Standard wage rate per direct labor hour                    $10
Actual wage rate per direct labor hour                         $11
Standard inputs allowed/unit of output                        2 hrs.
Actual units of input                                                          38,000 hrs.
Actual units of output                                                       20,000 units

The rate variance for direct labor is:

A.      $40,000 favorable

B.      $40,000 unfavorable

C.      $38,000 favorable

D.     $38,000 unfavorable

E.      $20,000 favorable

Explanation / Answer

Hi,

Please find the answer as follows:

Labor Rate Variance = Actual Hours *(Actual Rate - Standard Rate) = 38000*(11 - 10) = 38000 (U)

Option D is correct.

Thanks.

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.