Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The labor rate variance for August is:
A) $464 Favorable
B) $512 Unfavorable
C) $464 Unfavorable
D) $512 Favorable

Question

Handerson Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in August.
 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The labor rate variance for August is:
A) $464 Favorable 
B) $512 Unfavorable 
C) $464 Unfavorable 
D) $512 Favorable

Quizplus · Accepted Answer

The Answer of Handerson Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in August.
 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The labor rate variance for August is:
A) $464 Favorable 
B) $512 Unfavorable 
C) $464 Unfavorable 
D) $512 Favorable

Handerson Corporation Makes a Product with the Following Standard Costs