Hassock Corp.produces woven wall hangings.It takes 2 hours of direct labor to produce a single wall hanging.Bartels' standard labor cost is $12 per hour.During August,Bartels produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376.What is Bartels' labor rate variance for August?

Question

Quizplus · Accepted Answer

First, we need to determine the standard labor cost for the production of 10,000 units:

10,000 units x 2 hours per unit = 20,000 standard direct labor hours
20,000 standard direct labor hours x $12 standard labor cost per hour = $240,000 standard labor cost

Next, we can calculate the labor rate variance:

Actual labor cost - (Actual hours x Standard labor rate)

$250,376 - (21,040 actual hours x $12 standard rate) = $2,104 favorable labor rate variance.

Therefore, the correct answer is (C) $2,104 favorable.