The Reedy Company uses a standard costing system.The following data are available for November: The actual direct labor rate for November is:
A)$8.80
B)$8.90
C)$9.00
D)$9.20

Question

The Reedy Company uses a standard costing system.The following data are available for November:  The actual direct labor rate for November is:
A)$8.80 
B)$8.90 
C)$9.00 
D)$9.20

Quizplus · Accepted Answer

Labor rate variance = AH(AR - SR)
5,800 hours (AR - $9 per hour)= -$1,160
5,800 hours F1F1F1S1F1F1F10 AR - $52,200 = -$1,160
5,800 hours F1F1F1S1F1F1F10 AR = $51,040
AR = $51,040 F1F1F1S1F1F1F10 5,800 hours
AR = $8.80 per hour

The Reedy Company Uses a Standard Costing System