Reference: 11-06
The Alpha Company produces toys for national distribution. Standards for a particular toy are:
Materials: 12 grams per unit at 56 per gram. Labour: 2 hours per unit at $12.75 per hour.
During the month of December, the company produced 1,000 units. Information for the month follows: Materials: 14,000 grams were purchased and used at a total cost of $7,140.
Labour: 2,500 hours worked at a total cost of $33,000.
-The labour rate variance is?
A)$2,500 U.
B)$2,500 F.
C)$1,125 F.
D)$1,125 U.

Question

Quizplus · Accepted Answer

The Answer of Reference: 11-06
The Alpha Company produces toys for national distribution. Standards for a particular toy are:
Materials: 12 grams per unit at 56 per gram. Labour: 2 hours per unit at $12.75 per hour.
During the month of December, the company produced 1,000 units. Information for the month follows: Materials: 14,000 grams were purchased and used at a total cost of $7,140.
Labour: 2,500 hours worked at a total cost of $33,000.
-The labour rate variance is?
A)$2,500 U.
B)$2,500 F.
C)$1,125 F.
D)$1,125 U.

Reference: 11-06 the Alpha Company Produces Toys for National Distribution. Standards for Standards