Durkheim Goldfinger Limited budgeted a sales and production level of 2600 units for the month of December 20X3.The actual sales and production outturn was 2520 units.The labour budget for the month comprised an input of 3.2 hours per unit at a standard rate of £8.65.Actual figures per unit were 3.3 hours at an actual rate of £8.60. What was the labour rate variance for December 20X3?

Question

Quizplus · Accepted Answer

Labour rate variance = (Actual rate - Standard rate) x Actual hours
= (£8.60 - £8.65) x 2520 x 3.3
= £415.80 (F)

Durkheim Goldfinger Limited Budgeted a Sales and Production Level of 2600