Lian Corporation's standard wage rate is $12.10 per direct labor-hour (DLH) and according to the standards, each unit of output requires 7.1 DLHs. In June, 4,500 units were produced, the actual wage rate was $11.90 per DLH, and the actual hours were 35,930 DLHs.
-The Labor Rate Variance for June would be recorded as a:
A) credit of $6,390.
B) credit of $7,186.
C) debit of $7,186.
D) debit of $6,390.

Question

Quizplus · Accepted Answer

The Answer of Lian Corporation's standard wage rate is $12.10 per direct labor-hour (DLH) and according to the standards, each unit of output requires 7.1 DLHs. In June, 4,500 units were produced, the actual wage rate was $11.90 per DLH, and the actual hours were 35,930 DLHs.
-The Labor Rate Variance for June would be recorded as a:
A) credit of $6,390.
B) credit of $7,186.
C) debit of $7,186.
D) debit of $6,390.

Lian Corporation's Standard Wage Rate Is $12