The Luke Company makes tables for which the following standards have been developed: Production of 200 tables was expected in May,but 220 tables were actually completed.Direct materials purchased and used were 2,100 pounds at an actual price of $4.40 per pound.Direct labor cost for the month was $10,620,and the actual pay per hour was $18.00.What is the direct labor price variance for the month of May?
A)$1,180 Favorable
B)$1,180 Unfavorable
C)$1,200 Favorable
D)$1,200 Unfavorable

Question

The Luke Company makes tables for which the following standards have been developed:  Production of 200 tables was expected in May,but 220 tables were actually completed.Direct materials purchased and used were 2,100 pounds at an actual price of $4.40 per pound.Direct labor cost for the month was $10,620,and the actual pay per hour was $18.00.What is the direct labor price variance for the month of May?
A)$1,180 Favorable 
B)$1,180 Unfavorable 
C)$1,200 Favorable 
D)$1,200 Unfavorable

Quizplus · Accepted Answer

To calculate the direct labor price variance, we need to compare the actual hourly rate paid to the standard hourly rate. From the given information, we know the actual pay per hour was $18.00. However, we are not given the standard hourly rate. Therefore, we cannot find the direct labor price variance.

The Luke Company Makes Tables for Which the Following Standards