The following labor standards have been established for a particular product:
The following data pertain to operations concerning the product for the last month:

-The labor rate variance for the month was:
A) $5,750 F
B) $5,750 U
C) $1,130 F
D) $1,130 U

Question

The following labor standards have been established for a particular product:
  The following data pertain to operations concerning the product for the last month:
 
-The labor rate variance for the month was:
A) $5,750 F 
B) $5,750 U 
C) $1,130 F 
D) $1,130 U

Quizplus · Accepted Answer

SR = $117,600 ÷ [(3,350 units + 150 units) × 4 hours per unit]
SR = $117,600 ÷ [(3,500 units) × 4 hours per unit]
SR = $117,600 ÷ [14,000 hours]
SR = $8.40 per hour
AH × AR = $111,850
Labor rate variance = (AH × AR) − (AH × SR)
= ($111,850) − (13,450 hours × $8.40 per hour)
= $111,850 − $112,980
= $1,130 F

The Following Labor Standards Have Been Established for a Particular