Cabot Company collected the following data regarding production of one of its products.Compute the direct labor rate variance.
A)$53,500 unfavorable.
B)$40,500 favorable.
C)$53,500 favorable.
D)$13,000 unfavorable.
E)$40,500 unfavorable.

Question

Cabot Company collected the following data regarding production of one of its products.Compute the direct labor rate variance. 
A)$53,500 unfavorable. 
B)$40,500 favorable. 
C)$53,500 favorable. 
D)$13,000 unfavorable. 
E)$40,500 unfavorable.

Quizplus · Accepted Answer

Actual cost = $1,093,500; AH * SR = (81,000 * $13.00) = $1,053,000
Direct labor rate variance = $40,500 unfavorable

Cabot Company Collected the Following Data Regarding Production of One