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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