Simon Sayz is a regional manufacturer of baby toys produced from plastic derived from organic and non-toxic sources.Management budgeted one-half hour of direct labor per toy at a standard rate of $12.50 per hour.The most current production run produced 1,850 toys and used 1,750 labor hours at a total cost of $22,750.What is the direct labor rate variance for this production run?

Question

Quizplus · Accepted Answer

B)
Labor rate variance = (Actual rate per hour - Standard rate per hour)× actual hours
$875 U = ({$22,750/ 1,750} - $12.50)× 1,750

Simon Sayz Is a Regional Manufacturer of Baby Toys Produced