Fluegge Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for December:
The labor rate variance for the month is closest to:
A) $1,722 Unfavorable
B) $1,722 Favorable
C) $1,620 Favorable
D) $1,620 Unfavorable

Question

Fluegge Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.  The company has reported the following actual results for the product for December:
 The labor rate variance for the month is closest to:
A) $1,722 Unfavorable 
B) $1,722 Favorable 
C) $1,620 Favorable 
D) $1,620 Unfavorable

Quizplus · Accepted Answer

The Answer of Fluegge Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.  The company has reported the following actual results for the product for December:
 The labor rate variance for the month is closest to:
A) $1,722 Unfavorable 
B) $1,722 Favorable 
C) $1,620 Favorable 
D) $1,620 Unfavorable

Fluegge Incorporated Has Provided the Following Data Concerning One of the Products