Historic Restoration Company budgeted 2.5 hours of direct labor per unit at $14.75 per hour to produce 600 replica door knobs.The 600 knobs were completed using 1,200 hours of direct labor at $14.00 per hour.What is the direct labor rate variance?

Question

Quizplus · Accepted Answer

A)
Labor rate variance = (Actual rate per hour - Standard rate per hour)× actual hours
$900 F = ($14.00 - $14.75)× 1,200 hrs

Historic Restoration Company Budgeted 2