Jenkins Manufacturing
The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units:
Staudard:
Material 2 pounds per unit @$5.80 per pound
Labor 3 direct labor hours per unit @ $ \$ 10.00 $ per hour

Actual:
Material 4,250 pounds purchased and used@$5.65 per poume
Labor $ \quad 6,300 $ direction hours at $ \$ 9.75 $ per hour

Refer to Jenkins Manufacturing Company.What is the labor rate variance?
A)$1,575 U
B)$1,575 F
C)$1,594 U
D)$0

Question

Jenkins Manufacturing
The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units:
Staudard:
Material                 2 pounds per unit @$5.80 per pound
Labor                    3 direct labor hours per unit @ $ \$ 10.00 $ per hour

Actual:
Material              4,250 pounds purchased and used@$5.65 per poume 
Labor             $ \quad 6,300 $ direction hours at $ \$ 9.75 $ per hour

Refer to Jenkins Manufacturing Company.What is the labor rate variance?
A)$1,575 U
B)$1,575 F
C)$1,594 U
D)$0

Quizplus · Accepted Answer

The labor rate variance is calculated as (Actual Rate - Standard Rate) x Actual Hours. The standard rate is $10.00 per hour, and the actual rate is $9.75 per hour. The actual hours worked are 6,300. Thus, the labor rate variance is (9.75 - 10.00) x 6,300 = -0.25 x 6,300 = -$1,575, which is favorable because the actual rate is less than the standard rate.

Jenkins Manufacturing the Following Information Is Available for Jenkins Manufacturing $10.00 \$ 10.00 $10.00

Jenkins Manufacturing
the Following Information Is Available for Jenkins Manufacturing $\$ 10.00$