Tharaldson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June.
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 June is:
A) $616 Favorable
B) $616 Unfavorable
C) $550 Favorable
D) $550 Unfavorable

Question

Tharaldson Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in June.
 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 June is:
A) $616 Favorable 
B) $616 Unfavorable 
C) $550 Favorable 
D) $550 Unfavorable

Quizplus · Accepted Answer

The Answer of Tharaldson Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in June.
 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 June is:
A) $616 Favorable 
B) $616 Unfavorable 
C) $550 Favorable 
D) $550 Unfavorable

Tharaldson Corporation Makes a Product with the Following Standard Costs