ToolTime has a standard of 2 hours of labor per unit, at $12 per hour. In producing 2,000 units, ToolTime used 3,850 hours of labor at a total cost of $46,970. ToolTime's total labor variance is
A) $770 U.
B) $800 U.
C) $1,030 F.
D) $1,930 F.

Question

Quizplus · Accepted Answer

ToolTime's standard labor cost is 2,000 units * 2 hours per unit * $12 per hour = $48,000. The actual labor cost is $46,970. Therefore, the labor variance is $48,000 - $46,970 = $1,030 F.

ToolTime Has a Standard of 2 Hours of Labor Per