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Question 40

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Use the following information to answer questions
Aruba Factory produces hand-crafted items. During October, 46,000 units of product were manufactured and each unit takes 15 minutes. Line workers are paid $12 per hour. Total labor cost for the month was $135,140 for 11,650 hours. Production budgeted for October was 45,000 units.
-What is the labor rate variance?


A) $2,860 favorable
B) $4,660 favorable
C) $8,814 favorable
D) $9,180 favorable
E) none of the above

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