The following labor standards have been established for a particular product: St
ID: 2432669 • Letter: T
Question
The following labor standards have been established for a particular product:
Standard labor-hours per unit of output ------ 1.5 hours
Standard labor rate ------------------------------ $17.55 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked ------- 5,300 hours
Actual total labor cost ------ $94,340
Actual output ---------------- 3,600 units
What is the labor rate variance for the month?
$1,325U
$1,780F
$430F
$430U
a.$1,325U
b.$1,780F
c.$430F
d.$430U
Explanation / Answer
Labor rate variance for the month = 94340-(5300*17.55)= $1325 U Option A is correct
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