Gant Co. manufactures a product with a standard direct labor cost of two hours at $24.00 per hour. During July, 2,000 units were produced using 4,200 hours at $24.40 per hour. The labor quantity variance was
A) $4,880 F.
B) $4,800 U.
C) $3,280 U.
D) $4,880 U.

Question

Quizplus · Accepted Answer

The labor quantity variance is calculated as (Actual Hours - Standard Hours) x Standard Rate. Here, (4,200 - 4,000) x $24 = $4,800 Unfavorable.

Gant Co Manufactures a Product with a Standard Direct Labor Cost