The Davidson Corporation produces clocks.According to company standards,it should take 2 hours of direct labor to produce a clock.Davidson's standard labor cost is $19 per hour.During June,Thomas produced 6,200 stopwatches and used 13,500 hours of direct labor at a total cost of $260,000.What is Thomas' direct labor rate variance for June?

Question

Quizplus · Accepted Answer

D)
Labor rate variance = (Actual rate per hour - Standard rate per hour)× actual hours
$3,500 U = ({260,000/13,500} - $19)× 13,500

The Davidson Corporation Produces Clocks