When auto manufacturer BMW purchased the Rolls-Royce brand name,BMW had to hire and train a new staff of assembly workers.The new workers were paid $25 per hour,worked a total of 7,500 hours,and produced 2,000 cars.BMW budgeted for a standard labor rate of $27 per hour and 1.25 direct labor hours per car.What is the direct labor rate variance for the Rolls-Royce division?

Question

Quizplus · Accepted Answer

B)
Labor rate variance = (Actual rate per hour - Standard rate per hour)× actual hours
$15,000 F = (25 - 27)× 7,500

When Auto Manufacturer BMW Purchased the Rolls-Royce Brand Name,BMW Had